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OF MANUFACTURING INNOVATION

RENTECH engineers build unmatched power and performance into

every boiler we deliver. Our 80-acre manufacturing facility—the industry’s most
technologically advanced—includes heavy bay and light bay areas with direct access
to rail, cross-country trucking routes and shipping facilities. We master every detail to
deliver elemental power for clients worldwide. Take an expanded tour of our facilities
today at www.rentechboilers.com/facilities
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HEAT RECOVERY STEAM GENERATORS

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FIRED PACKAGED WATERTUBE BOILERS
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 JULY 2015 | HydrocarbonProcessing.com

REFINERY OF
THE FUTURE
Advanced project management and
technology solutions facilitate revamps
to meet environmental regulations

CHINA REPORT
An “energy revolution” meets expanding
industrial infrastructure, demand growth

LNG REPORT
Changing market conditions spur LNG
developers to reassess project economics

PROJECT MANAGEMENT
Successful project execution requires
managing different types of risk
HARNESS THE POWER
OF MANUFACTURING INNOVATION

RENTECH engineers build unmatched power and performance into

every boiler we deliver. Our 80-acre manufacturing facility—the industry’s most
technologically advanced—includes heavy bay and light bay areas with direct access
to rail, cross-country trucking routes and shipping facilities. We master every detail to
deliver elemental power for clients worldwide. Take an expanded tour of our facilities
today at www.rentechboilers.com/facilities
HARNESS THE POWER WITH RENTECH.

HEAT RECOVERY STEAM GENERATORS

WASTE HEAT BOILERS
FIRED PACKAGED WATERTUBE BOILERS
SPECIALTY BOILERS

Select 52 at www.HydrocarbonProcessing.com/RS

WWW.RENTECHBOILERS.COM
 JULY 2015 | Volume 94 Number 7
HydrocarbonProcessing.com

59

56

SPECIAL REPORT: REFINERY OF THE FUTURE DEPARTMENTS

33 European refiner revamps delayed coker to meet Euro 5 specifications 10 News
C. Bolohan, L. Manafu and J. D. Ward 17 Industry Metrics
39 Use advanced automation and project management 84 Innovations
to simplify refinery construction 86 Marketplace
E. Spiropoulos 88 Advertiser Index
43 Turning a Tier 3 profit 89 Events
J. Esteban and M. Hartman 90 People
49 How to cost-effectively adapt to a tight oil world
D. Lindsay, M. Griffiths, A. Sabitov, D. Sioui and B. Glover COLUMNS
BONUS REPORT: LNG 9 Editorial Comment
Courage amid challenge and change
57 US liquefaction projects to drive global expansion of LNG trade
A. Slaughter 19 Reliability
Trends from the 2015
AFPM Maintenance and
REGIONAL REPORT Reliability Conference
59 China’s ‘energy revolution’ strives for sustainable growth
M. Rhodes 21 Automation Strategies
Safety lifecycle management
challenges in hydrocarbon
PROJECT MANAGEMENT processing plants
69 Better risk-management methods ensure project success
C. Rentschler and G. Shahani
23 Global
Investment in Egypt’s
downstream on the rise
GAS TREATING
73 Improve LPG treating via advanced amine-solvent recovery technologies 25 Petrochemicals
Higher international sales boost
D. Engel, H. Burns and B. Spooner 2015 earnings above forecast
for many chemical leaders
MANAGEMENT
79 A data-driven, experience-based approach to workforce optimization 27 Engineering Case Histories
Case 85: Learnings on
B. Glasscock hydraulically fitted hubs

PROCESS AUTOMATION 29 Viewpoint

Advice for the downstream:
82 Automate environmental monitoring at petrochemical plants with LIMS Keep the faith
T. Meek

Cover Image: Klesch Group’s Heide refinery, located north of Hamburg, Germany, is a distillates-focused plant.
It produces mainly diesel, heating oil, jet fuel and some gasoline and petrochemicals. While servicing the inland
markets, the refinery is well integrated with the local industrial community of Brunsbüttel, with access to road
and rail networks and local pipelines. Photo courtesy of Photo Raffinerie Heide.

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Two Events, One Location
September 9–11, 2015
Hyatt Regency Houston | Houston, Texas

AMERICAS
GasProcessingConference.com LNGAmericasConference.com

Get the latest natural gas and LNG industry

outlooks, infrastructure updates, technology
developments and more
The second annual GasPro Americas will be held September 9-11, 2015 in Houston, Texas at the Hyatt Regency Houston. This
year’s conference will be held in conjunction with LNG Americas, and together, these events provide a timely gathering for
the gas processing industry to meet and discuss the latest challenges and developments; learn about the current economic
outlook; share best practices; explore solutions to help improve production and efficiency; network with peers and more.

Agenda at a Glance:
September 9: Combined Business Day / September 10–11: Dual-track Technical Program
The GasPro Americas track focuses on broader gas processing topics and the LNG Americas track is devoted to LNG.
Attendees will be able to jump back and forth between BOTH conferences. Attend the sessions that interest you the most!

Technical Sessions Include:

• Separation/dehydration/acid gas removal • Policy in the Americas
• Rejection: Ethane/methane/nitrogen • Regional opportunities for the Americas:
• NGL recovery Pacific Northwest, Canada
• Gas sweetening/fractionation • Bunkering
• Syngas production and utilization • LNG supply chain
• Flaring and emissions • Liquefaction and regasification

Events Supported by: Organized by:

Singapore | Singapore EXPO | 27 – 30 October 2015

28TH EDITION
 Register Early
and Save 10%
Early Bird Pricing Ends August 4th

Business Day Agenda: Wednesday, September 9

7:30–8:55 a.m. Registration and continental breakfast
Session One: The future of natural gas in America
8:55–9 a.m. Opening Remarks: John Royall, President and Chief Executive Officer, Gulf Publishing Company
9–9:35 a.m. EIA: Annual Report 2015: Vishakh Mantri, PhD, PE, PMP, Office of Petroleum, Natural Gas and Biofuels
Analysis – Biofuels and Emerging Technologies Team, US Energy Information Administration
9:35–10 a.m. Domestic energy infrastructure update: Lee Nichols, Data Director, Gulf Publishing Company
10–10:30 a.m. Coffee break
Session Two: NGL in America
10:30–10:55 a.m. NGL Outlook: Anne Keller, Manager, NGL Research, Wood Mackenzie
10:55–11:20 a.m. Production of gas liquids – Eagle For and Marcellus/Utica: Ajey Chandra, Managing Director,
Muse, Stancil & Co
11:20–11:45 a.m. Gathering, processing and take away efficiencies: Crestwood Midstream Partners (invited)
11:45 a.m.–12:45 p.m. Lunch
Session Three: The future of LNG—Are we still a competitive option for the global market
12:45–1:15 p.m. Global LNG: Will new demand and new supply mean new pricing: Dale Nijoka, Global Oil and Gas Leader,
EY (invited)
1:15–1:40 p.m. LNG Finance in World Markets: Jason Feer, Global Manager, Poten & Partners
1:40–2:10 p.m. Coffee break
2:10–2:35 p.m. Methane emissions and solutions in natural gas: Matthew Kelly, Analyst¸ICF International (invited)
2:35–3:45 p.m. Panel Discussion: Reducing emissions – Operator response
Moderator: Ken Chow, Senior Partner, Muse, Stancil & Co
Invited panelists from: Enlink Midstream; Enterprise Products Partners, LP; Williams Partners; Energy
Transfer Partners; Noble Energy; Chesapeake Energy; and Questar Pipeline Company.
3:45 p.m. Closing Remarks: John Royall, President and Chief Executive Officer, Gulf Publishing Company
*Visit GasProcessingConference.com for the complete technical program and agenda updates.

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To Sponsor, Exhibit or to Register Offline: Contact Melissa Smith, Events Director
at Melissa.Smith@GulfPub.com or +1 (713) 520-4475 for more information.
Select 55 at www.HydrocarbonProcessing.com/RS
 Editorial
Comment
Courage amid challenge and change
Working in the downstream requires
tremendous courage. Why courage? It
does not mean HPI staff have no fear.
Actually, it is quite the contrary. The
downstream industry must manage risk
at many levels that can be interpreted as
almost fearful.
Why try? Why work in an industry that
is constantly challenged by governments
and regulatory agencies? For many, it is
rewarding to overcome obstacles and to
create products that have, and continue
to, revolutionize society.
Today’s society was created through the
development of transportation fuels and
combustion engines. With both advance-
ments, goods and people became more
mobile, thus further developing commerce
domestically and internationally.
Room for all. Some critics hold the
thought that oil and natural gas-based fu-
els and products have outlived their use-
fulness, and that society should switch to
renewable fuels and plastics.
Open-minded thinking supports
the argument that there is room for all
products. Research and development is
warranted to identify and investigate al-
ternative products as part of sustainable
development for the long term. What is
undermining, if not destructive, is the
support of regulations that mandate con-
version to alternative fuels before such
products have been thoroughly devel-
oped and can compete in the market-
place without subsidies and penalizing
regulations.
In the US, the battle to oust crude oil-
based transportation fuels continues. For
many years, critics of big oil have waged
a war against transportation fuels under
the guise of saving the planet and the
people. This is a harsh viewpoint. Over
the past two decades, transportation fu-
els have been over-regulated under the
premise of protecting the public and en-
suring energy security.
STEPHANY ROMANOW, EDITOR
HPEditorial@HydrocarbonProcessing.com
‘When the going gets tough...’ Such
conditions require courage by members of
downstream companies to knowingly face
these challenges and continue to develop
viable solutions. What if Thomas Edison
had quit working to find the proper fila-
ment for the light bulb after the first few
failures? For the most part, society would
have remained in the dark, thus hindering
the beginning of the industrial revolution.
In the US, outdated laws such as the Re-
newable Fuel Standard (RFS) keep the re-
fining business in the dark. Over the years,
HP has commented on environmental and
safety issues for transportation fuels and
petrochemical products through the In-
sight and Editorial columns. As a member
of the HP editorial team for over 23 years,
it has been my responsibility to develop
these columns to comment on pressing is-
sues for the downstream industry. A quick
review of my past editorials yields a unique
trend: Without fail, the downstream rallies
to overcome numerous obstacles present-
ed by changing economic cycles, regula-
tions and technological developments.
There is no single solution to the topic
of clean transportation fuels. Energy sup-
plies are a political and social issue in ad-
dition to being a profitability concern.
Many parties are involved, thus further
complicating viable solutions to meet the
demands of all stakeholders.
Change requires courage. Many chal-
lenges remain to be solved by the talented
individuals working in this industry. It has
been my great pleasure to share updates
and present new ideas through past edi-
torials. More importantly, it has been an
honor to serve as an editor on the HP staff
for the past 23 years.
As with other downstream compa-
nies, HP is also undergoing a crew change
as I retire from the HP team. I thank the
numerous readers and members of the
downstream community for their support
of HP over the past two decades, and wish
great success to all.
INSIDE THIS ISSUE
32 Refinery of the future.
Process automation in oil
refineries is undergoing major changes,
driven by the need for faster and
more comprehensive advances from
automation OEMs. Yokogawa and
ExxonMobil explain how advanced
automation hardware technologies,
when used in conjunction with new
project management techniques, make
refinery construction and upgrades
simpler, easier and faster.
56 Bonus report: LNG.
The global LNG environment
is changing alongside fluctuating
energy prices and trading patterns,
particularly in Asia. The executive
director of the Deloitte
Center for Energy Solutions explains
how LNG developers will consider
project economics on an individual
basis, despite variable market
conditions, and which countries
will shape LNG trade flows over
the next five years.
59 Regional report: China.
China’s energy demand is
rapidly increasing to keep pace with its
expanding industrial and transportation
infrastructure. The country’s
government has called for a “revolution
in energy” amid pressure
to reduce air pollution levels and
secure long-term, sustainable growth.
69 Project management.
Management of project
risk is a challenge; tight schedules and
insufficient resources are at the heart
of the problems surrounding capital
projects. Linde Engineering discusses
how to use risk management as a
key ingredient in project execution,
and presents alternative strategies
for successfully managing risk.
Hydrocarbon Processing | JULY 20159
 | News
TOYO Engineering will use project execution
solutions to deliver Malaysia cracker
TOYO Engineering has purchased two leading Intergraph project execution solutions,
which are being used to deliver a large-scale steam cracker complex in Malaysia.

The project is part of the Refinery and Petrochemicals Integrated Development

(RAPID) megaproject. When completed, it will consist of a 300-Mbpd refinery and
petrochemical complex with a combined capacity of producing 7.7 MMtpy of various
grades of products, including differentiated and specialty chemical products, such
as synthetic rubbers and high-grade polymers.

The first solution is the Intergraph Smart 3D, which leverages real-time concurrent
design, rules, relationships and automation specific to the plant industry. TOYO
also selected SmartPlant Materials, which offers a total materials management
and subcontract management solution for chemical plants and projects.
MIKE RHODES, TECHNICAL EDITOR
Mike.Rhodes@HydrocarbonProcessing.com

News

Oman to build Haverhill to shutter Ohio gines, propulsion equipment (including

multi-faceted facilities phenol/acetone plant the gearbox), two 20DF auxiliary gener-
ating sets, a liquefied natural gas (LNG)
in Indonesia An unexpected withdrawal of finan- fuel system and a cargo handling system.
Oman will invest $7 B to build oil stor- cial support has halted production and The Dragon-class ships (FIG. 2) will
age facilities, a petrochemical plant and a resulted in a cessation of operations at be chartered by INEOS Europe for the
refinery in Indonesia. The refinery would Haverhill Chemicals’ phenol/acetone transportation of ethane to Europe from
be built in Indonesia’s Riau province, complex in Ohio. Haverhill acquired the the Mariner East project in the US. While
with the oil products being purchased complex from Sunoco in late 2011. The the carriers are purpose built for the
by state-owned oil and gas company Per- site has a production capacity of 300 transportation of ethane, they can also
tamina. An agreement was also signed Mtpy of phenol and 173 Mtpy of acetone. carry a wide range of petrochemical gases
for the supply of crude oil to the former Shipments to customers will continue and liquefied petroleum gas (LPG).
OPEC member. until inventory is exhausted. The process The various individual Wärtsilä solu-
The project is now in the process of is- is expected to be completed in July. tions are integrated to form a fully opti-
suing permits and groundbreaking is ex- mized package. By engineering and sup-
pected to begin in 2016. First Dragon-class plying the complete cargo plant, along
Indonesia’s fuel output has suffered with the gas fuel supply system and the
from a lack of investment in its refining
vessel to transport propulsion plant, optimal energy con-
sector since the construction of its last re- US ethane to Europe sumption efficiency for the entire vessel
finery was completed in 1994. Pertamina The first in a series of 27,500-cbm can be achieved. For example, the LNG
has 1 MMbpd in refining capacity, which Dragon-class vessels ordered by Evergas, supply system is integrated with the cargo
it plans to raise to 2.3 MMbpd through an owner and operator of seaborne petro- handling system so it can be used to cool
upgrades and additional plants. chemical and liquid gas transport vessels, the cargo.
has been delivered from the Sinopacific The Dragon-class vessels (FIG. 2) are
Neste, Total to develop Offshore & Engineering (SOE) shipyard 180 m long and 26.6 m wide with a draft
in China. The vessel features a compre- of approximately 9 m, and they represent
biosolvents, technical hensive Wärtsilä solutions package, in- the largest ethane carriers in their class in
fluids for downstream cluding two Wärtsilä 50DF dual-fuel en- the world.
Neste Oil and Total Fluides, a pro-
ducer of high-purity hydrocarbon fluids,
have signed a collaborative agreement for
the supply of Neste’s NEXBTL renewable
isoalkane used by Total Fluides as feed-
stock to produce and develop innovative
bio-based solvents and technical fluids.
NEXBTL renewable products have a
comparable position to that of their fossil
equivalents and can be transformed into
materials with unique properties. Neste
produces NEXBTL products intended
for chemical industry use at its renewable
products refineries in the Netherlands,
Singapore and Finland (FIG. 1).
Total Fluides will market a new line of
renewable fluids for numerous applica-
tions such as paints and coatings, drilling
fluids, solvents for emulsion polymeriza-
tion, printing ink fluids, and emollients
for cosmetics, among others. The bio-
based fluids will be produced at the com-
pany’s plant in France. FIG. 1. NESTE produces NEXBTL products at its renewable products refinery in Porvoo, Finland.

Hydrocarbon Processing | JULY 201511

 News
Chevron sells New
Zealand downstream
operations to Z Energy
Z Energy has agreed to buy Chevron
Corp.’s downstream operations in New
Zealand for $558 MM, ensuring its place
as the nation’s biggest gasoline retailer.
The company will add Chevron’s 146
Caltex retail outlets to its existing 210
sites, which were acquired in 2010 when
the company took over assets from Royal
Dutch Shell. It also will grow its share of
supply to commercial operators and its
role in distribution.
Chevron, which sold a 50% stake in
Caltex Australia in March, has also di-
vested an 11% stake in New Zealand Re-
fining Co.
FIG. 2. Evergas has taken delivery of a Dragon-class vessel powered by a Wärtsilä propulsion
solution.
FIG. 3. Bechtel construction at Australia’s Curtis Island LNG complex.
12JULY 2015 | HydrocarbonProcessing.com
Emerson acquires
software group ESI
Emerson Process Management has
acquired Energy Solutions International
Holdings Inc. (ESI), expanding its capa-
bility to provide complete solutions for
automation and operations management
throughout the oil and gas transporta-
tion industry.
ESI’s integrated suite of operational
management applications for pipeline
modeling, leak detection and scheduling is
recognized for improving both operational
efficiency and profitability. ESI will join
Emerson’s Remote Automation Solutions
group, which provides oil and gas super-
visory control and data acquisition (SCA-
DA) and fiscal measurement solutions.
UOP wins Egypt oil refinery
expansion contract
UOP LLC, a Honeywell company, has
signed two contracts worth a combined
$1.4 B for the expansion of an oil refinery
in the Amreya free zone of Alexandria,
Egypt. As part of the agreement with
state-owned Middle East Oil Refinery
(MIDOR), UOP will provide engineer-
ing designs and licensing. The project
aims to increase the refinery’s produc-
tion capacity by 60%, from 100 Mbpd to
160 Mbpd.
When the expansion is completed, the
annual production capacity of the refin-
ery will reach up to 245 Mtpy of butane
gas, 1.3 MMtpy of gasoline, 3.2 MMtpy
of diesel oil, 570 Mtpy tons of coal and
135 Mtpy of sulfur (S).
CB&I awards Shintech
ethane cracker furnace
coil contract to Manoir
International metal processing group
Manoir Industries has been awarded the
complete furnace coils contract by CB&I
for the Shintech ethane cracker project in
Plaquemine, Louisiana.
The furnace components are based on
Manoir’s Manaurite high-alloy technol-
ogy and are manufactured in its produc-
tion center in Yantai, China, with the co-
ordination and support of technology and
project teams in Pîtres, France. Manoir
develops alloys and manufactures high-
performance metal components molded
and forged for the petrochemical, nuclear,
oil and gas, civil engineering, energy, de-
fense and construction markets.
The teams work under an international
production scheme that guarantees con-
sistent manufacturing and quality control
processes across all plants in France, the
UK, India and China.
Bechtel to quadruple
Queensland LNG
production this year
Bechtel is on track to complete the con-
struction of an additional three LNG pro-
duction trains on Curtis Island by the end
of 2015, quadrupling Queensland’s LNG
production. The company is constructing
the state’s first three LNG plants, the first
in the world to convert commercial quan-
tities of coal seam gas into a liquid form
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 News

ready for export. At full capacity, the three
Curtis Island projects will produce a com-
bined 25 metric MMtpy of LNG.
When complete, the operators of the
plants—Queensland Curtis LNG (BG
Group), GLNG Plant Project (Santos,
Petronas, Total and KOGAS) and Aus-
tralia Pacific LNG (ConocoPhillips)—
will produce the commodity for export
to their global customers. Six production
trains (FIG. 3) will be operational when
Bechtel hands over the LNG plants to the
owner teams for long-term operation.
Queensland Curtis LNG Train 1 has
been producing LNG since December
2014, and Bechtel is now working on de-
livering the second train for that project.
Concurrently, Bechtel teams on the GLNG
and Australia Pacific LNG plants recently
introduced gas into their systems and be-
gan producing their own power as part of
commissioning the first of two production
trains on each site. The second production
trains on each of these projects are expect-
ed to be operational in early 2016.
US approves non-FTA
LNG exports from
Alaska project
The US Department of Energy (DOE)
has sanctioned the export of LNG from a
plant on the Kenai Peninsula to countries
that do not have a free trade agreement
(FTA) with the US.
The agreement calls for the export of
up to 2.55 Bcfd of gas for 30 years, or over
3% of US gas supply, opening up strand-
ed natural gas on Alaska’s North Slope to
global markets following a growing list of
other projects already making moves in
that direction.
The project, estimated to cost $45
B–$65 B, would include an 800-mi
pipeline to transport gas from Alaska’s

APEX
northern reaches to Nikiski on the Kenai
Peninsula, where it would be liquefied
for shipment overseas, likely to markets
in Asia.
Alaska LNG is being developed by a
consortium including affiliates of Exx-
INNOVATION IN SEPARATION onMobil, ConocoPhillips and BP. It is
expected to take years to build, and must
still undergo an environmental review
and a final investment decision.
PENTAIR Oil and Gas Separations designs and manufactures high
performance separation products and systems for the capture of
particulate, liquid, and soluble contaminants from liquid and gas
streams. Jacobs awarded contract
for Singapore VAE
The original UltiSep Separator technology was developed more
than twenty-five years ago to address the inherent deficiencies of
emulsions production plant
conventional gas-liquid separators, proving that it was possible to
more effectively remove liquids and aerosols from gas streams. Jacobs Engineering Group Inc. has
been awarded an engineering, procure-
A culture of continued innovation and engineering lead to the ment and construction management
development of Apex element technology inside of the UltiSep.
Apex made it possible to further increase separator performance,
(EPCM) contract from Celanese Corp.
with efficiencies that could exceed 99.97%. for the construction of a vinyl acetate
ethylene (VAE) emulsions production
APEX+ has been developed to further optimize these advanced plant at Jurong Island, Singapore. With
separation technologies
ɒ,QWHUFHSWLRQRIVXEPLFURQDHURVROV
the plant, Celanese will broaden its ca-
ɒ&RDOHVFHQFHLQWRODUJHUDQGODUJHUOLTXLGGURSOHWV pabilities throughout the Asia-Pacific
ɒ Mass Transfer of the captured liquids out of the gas region, primarily in the higher-end ap-
stream plications of architectural coatings,
building and construction, carpets and
paper industries.
Under the terms of the contract, Ja-
cobs is responsible for the detailed engi-
neering and design of the project, includ-
(936) 788-1000
ing procurement of major equipment and
www.pentairseparations.com management of construction services.
Construction is expected to begin by
mid-2015, and the unit is expected to be-
gin production by the second half of 2016.
Select 152 at www.HydrocarbonProcessing.com/RS
14
 News

NOVATEK signs long-term
LNG contract with Shell
Novatek Gas & Power, a wholly
owned trading subsidiary of OAO NO-
VATEK, has signed a long-term contract
with Shell International Trading Middle
East for the supply of LNG from the Ya-
mal LNG project (FIG. 4).
The contract stipulates annual supply
of approximately 0.9 MMtpy of LNG for
more than 20 years from the volumes that
Novatek Gas & Power will purchase from
KBR, Exelus to license
catalyst technology
KBR has signed an agreement with
Exelus to allow KBR to exclusively li-
cense Exelus’ solid-acid catalyst (ExSact)
for KBR’s solid-acid alkylation technol-
ogy (K-SAAT).
Global demand for motor fuels con-
tinues to rise, while stricter environmen-
tal standards and oxygenate blend re-
quirements for gasoline place a premium
on clean-burning fuels, such as alkylate.
The key to the K-SAAT technology is
ExSact, a solid-acid catalyst engineered
to overcome rapid deactivation limita-
tions of solid-acid catalysts and provide
superior alkylation performance. The
K-SAAT process is adaptive, safe and
environmentally benign compared with
conventional liquid-acid catalyst process
technologies.
19

Yamal LNG.
OAO NOVATEK, Russia’s largest in- 18

dependent gas producer and the second-

largest natural gas producer, is engaged in
the exploration, production, processing 17

and marketing of natural gas and liquid

hydrocarbons. 16

Shell acquires land 15

for ethane cracker

Shell Chemical is in the midst of a 14

multi-year site review that includes envi-

ronmental analysis, engineering design
studies, evaluation of ethane supply and
13

economic viability.
If built, the facility would include an 12
2

ethane cracker with a nameplate capacity

of 1.5 MMtpy of ethylene; three polyeth-
ylene units with a combined production
11

of 1.6 MMtpy; and utilities.

The proposed complex would be the 10

first major US project of its type to be

built outside of the US Gulf Coast region
in 20 years. Shell says locating the facility
9

close to both supply and markets would

reduce economic and environmental 8

transportation costs and provide regional

plastic manufacturers with more flexibil-
ity, shorter supply chains and enhanced
Big changes 7

supply dependability.
Shell plans to source ethane feedstock
SOMETIMES 6

for the complex from the nearby Marcel-

lus and Utica shale plays.
START SMALL. 5
Trust our long experience
from predecessor
company Süd-Chemie.

CATALYST SOLUTIONS THAT DELIVER VALUE:

CLARIANT CATALYSTS. 4

Our products are small, but they deliver big value.

Use our high-performance catalysts to make
3
more of what you want and less of what you don’t,
centimeter 1:1

all with less energy. We are ready for your

big challenges. 2

WWW.CATALYSTS.CLARIANT.COM
1

FIG. 4. Part of the Yamal LNG project in Russia.

Select 153 at www.HydrocarbonProcessing.com/RS

15
 Cutting-edge
process control
NEO Monitors’ LaserGas™ iQ2 is a laser based gamechanger. No other TDLS instrument is
able to measure four gases (O2, CO, CH4, H2O) and temperatures in one unit for combustion
analysis. This ensures vast benefits for industries such as oil and gas and chemical.

Benefits and functionality:

• Increased control over combustion
processes
• Compliance with HSE-regulations
• Fast installation
• More precise measurements
inside pipes
• Low installation cost
• Reduced operating costs

LaserGas™ iQ2 is suitable for FCC units, package boilers,

process heaters, electrostatic precipitators, VCM waste
gas recovery, reformer gas, inertisation, etc.

Experience. The difference

Explore the future at www.neomonitors.com

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Select 71 at www.HydrocarbonProcessing.com/RS
MIKE RHODES, TECHNICAL EDITOR
Mike.Rhodes@HydrocarbonProcessing.com

Industry Metrics

US refineries are running at record levels and delaying their sched- Global refining margins, 2014–2015*
uled 2015 maintenance until 2016 to take advantage of very high mar- 20
gins and demand for refined products, including gasoline. In the Asian
market, refinery margins strengthened on the back of higher regional 15

Margins, US$/bbl
demand amid tightening sentiment due to the maintenance season. 10
An expanded version of Industry Metrics can be found 5
online at HydrocarbonProcessing.com. 0 WTI, US Gulf Arab Heavy, US Gulf Brent, Rotterdam
Dubai, Singapore LLS, US Gulf
US gas production (Bcfd) and prices ($/Mcf) -5

May 14

June 14

July 14

Aug. 14

Sept. 14

Oct. 14

Nov. 14

Dec. 14

Jan. 15

Feb. 15

Mar. 15

April 15

May 15
80 7
70 6
60 5 Gas prices, $/Mcf Global refining utilization rates, 2014–2015*
Production, Bcfd

50 100
4
40 90
3
30 Utilization rates, %
price (Henry
Monthly price (Henry Hub)
Hub) 2 80
20 12-month price avg.
10 12-month
Production
Productionprice avg. 1 70
0 0 US Japan
M J J A S O N D J F M A M J J A S O N D J F M A M 60 EU 16 Singapore
2013 2014 2015 50
Production equals US marketed production, wet gas. Source: EIA.
May 14

June 14

July 14

Aug. 14

Sept. 14

Oct. 14

Nov. 14

Dec. 14

Jan. 15

Feb. 15

Mar. 15

April 15

May 15
Selected world oil prices, $/bbl
130
US Gulf cracking spread vs. WTI, 2014–2015*
115 50
Prem. gasoline unl. 93 Gasoil/diesel, 0.05% S
Oil prices, $/bbl

100 40 Jet/kero Fuel oil, 180c

Cracking spread, US$/bbl

85 30
W. Texas Inter. 20
70 Brent Blend
Dubai Fateh 10
55 Source: DOE 0
40 -10
M J J A S O N D J F M A M J J A S O N D J F M A M
May 14

June 14

July 14

Aug. 14

Sept. 14

Oct. 14

Nov. 14

Dec. 14

Jan. 15

Feb. 15

Mar. 15

April 15

May 15
2013 2014 2015

World liquid fuel supply and demand, MMbpd

Rotterdam cracking spread vs. Brent, 2014–2015*
100 6
Forecast 30
Stock change and balance, MMbpd

98 Stock change and balance 5

Supply and demand, MMbpd

96 World demand 4
Cracking spread, US$/bbl

World supply 20
94 3
92 2 10
90 1 Prem. gasoline unl. 98, 10 ppm S Gasoil, 10 ppm S
88 0 0 Jet/kero Fuel oil, 1% S
86 -1
-10
84 -2
82 -3 -20
2010-Q1 2011-Q1 2012-Q1 2013-Q1 2014-Q1 2015-Q1 2016-Q1
May 14

June 14

July 14

Aug. 14

Sept. 14

Oct. 14

Nov. 14

Dec. 14

Jan. 15

Feb. 15

Mar. 15

April 15

May 15

Source: EIA Short-Term Energy Outlook, June 2015.

Global new project announcements, June 2014–May 2015

Singapore cracking spread vs. Dubai, 2014–2015*
40
30
35
Cracking spread, US$/bbl

30 20
New projects

25 10
20 0
15
-10 Prem. gasoline unl. 92 Gasoil, 50 ppm S
10 Jet/kero Fuel oil, 180 cSt, 2% S
-20
5
May 14

June 14

July 14

Aug. 14

Sept. 14

Oct. 14

Nov. 14

Dec. 14

Jan. 15

Feb. 15

Mar. 15

April 15

May 15

0
June- July- Aug.- Sept. Oct.- Nov. Dec.- Jan.- Feb.- Mar.- April- May-
14 14 14 -14 14 -14 14 15 15 15 15 15 * Material published permission of the OPEC Secretariat; copyright 2015;
Source: Hydrocarbon Processing Construction Boxscore Database all rights reserved; OPEC Monthly Oil Market Report, June 2015.

Hydrocarbon Processing | JULY 201517

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Select 97 at www.HydrocarbonProcessing.com/RS
 HEINZ P. BLOCH, RELIABILITY/EQUIPMENT EDITOR
Reliability Heinz.Bloch@HydrocarbonProcessing.com
Trends from the 2015 AFPM Maintenance
and Reliability Conference
The annual American Fuel & Petrochemical Manufacturers
(AFPM) Reliability and Maintenance Conference and Exhibi-
tion was held in Austin, Texas, in late May. This conference has
been held for a long time. Over the decades, there have been
good and not-so-good trends presented at this event, and the
2015 maintenance and reliability conference was no exception.
Training. As in previous years, over 200 exhibitors were repre-
sented at this conference. Unfortunately, the service providers
and their staff outnumbered attendees from operating compa-
nies. It was again clear how, to some managers in the hydrocarbon
processing industry (HPI), training is a deferrable option. It is
assumed that not investing in targeted training will appear neatly
on the company’s balance sheet. Conversely, deferred training is
a very unhealthy trend if it is sustained over the long term.
Stars of AFPM 2015. Fortunately, the 2015 maintenance and
reliability event had many presenters and exhibitors deserving
of commendations. Two co-presenters from Flint Hills Re-
sources (FHR) plants in Minneapolis/St. Paul, Minnesota, and
Corpus Christi, Texas, conveyed their personal commitment
and the company’s consistent leadership model. Their collec-
tive norms of behavior are based on shared values and beliefs—
a slow but commendable trend. Likewise, FHR doubled down
on the company’s commitment to training and sent a sizable
group of reliability professionals to attend this conference.
Good for FHR! Such actions have a greater impact for employ-
ees than clever slogans and press releases.
New trends. Favorable trends are developing in the emergence
of service organizations with global experience that is anchored
in analytical and implementation tasks. More specifically, com-
panies, such as T.A. Cook, can find and explain massive oppor-
tunities hidden in an HPI company’s maintenance routines or
data. Suitable analyses and comparisons with other locations and
competitors can help uncover opportunities that may have re-
mained untapped due to a lack of solid proof. The time (or train-
ing) may not have been available to properly examine workflow
or asset upgrading opportunities in a complex processing envi-
ronment. Also, it is difficult to identify and apply benchmarking
techniques that were devised for another industry or company.
Shutdown management and work definitions are deserving
of accurate data gathering and detailed cost justification. Also,
there are elements of risk management (RM) that are frequent
prerequisites to turnaround work. Entrusting RM to competent
service organizations that can provide all needed and relevant
analysis and auditing tasks is a viable action.
In a follow-up review centered on one asset management/
operational excellence provider, this author came away with the
impression that sustainable efficiency gains, massive and acceler-
ated learning tasks, plus effective management of future process-
es and decisions are needed. Working with highly experienced
consulting companies and service providers is a favorable action.
Such providers were present at the 2015 AFPM Reliability Con-
ference and Exhibition. This is an obviously desirable trend.
Program. The 2015 program committee should be praised
for selecting an unusually relevant keynote speaker, D. Michael
Abrashoff, a former US Navy commander and the author of It’s
Your Ship. He was a navy officer who was assigned to a ship with
very poor performance and very low morale. To drastically im-
prove the performance of the ship’s crew, he had to change his
own leadership style from the traditional command-and-control
model. Captain Abrashoff created a high-performance culture,
and it is one worthy of imitation. He encouraged crew members
to identify problems when they are still small, and empowered
them to take corrective action. Abrashoff ’s program was in sync
with FHR. On a similar path, FHR developed and nurtured a
culture strongly biased to action. It is the author’s humble opin-
ion that it is time for HPI organizations to recognize and imitate
both FHR and Captain Abrashoff.
Next year’s wishes. The 2016 event will take place in San
Antonio, Texas. The optimist in us hopes to hear how other
companies joined best-of-class ranks and learn how these orga-
nizations took steps toward growth. There is a need to become
problem solvers and to mature in status and reliability perfor-
mance. We must find and cure root causes of problems instead
of just treating the symptoms. An optimistic trend would be that
more companies work closely with competent solution provid-
ers. Finally, there are merits in training and grooming profes-
sionals in both salaried and wage positions. If you are among
the very best, then please share your wisdom and experience.
HEINZ P. BLOCH resides in Westminster, Colorado. His
professional career commenced in 1962 and included
long-term assignments as Exxon Chemical’s regional
machinery specialist for the US. He has authored over
600 publications, among them 19 comprehensive
books on practical machinery management, failure
analysis, failure avoidance, compressors, steam
turbines, pumps, oil mist lubrication and practical
lubrication for industry. Mr. Bloch holds BS and MS
degrees in mechanical engineering. He is an ASME
Life Fellow and maintains registration as a
professional engineer in New Jersey and Texas.
Hydrocarbon Processing | JULY 201519
Meet Regulatory
g y Compliance
p And
Turn Underutilized
Turn Underutilized Assets
Assets Into
o Profit
Profit With
With
RENEWABLE REVAMPS
REVAMP YOUR REFINERY
WITH THE UOP
RENEWABLE JET FUEL™
PROCESS
Refineries that revamp using the UOP
Renewable Jet Fuel process turn waste
feedstocks into high-quality renewable
diesel or renewable jet fuel, resulting in
a stream of additional profits without high
capital investment costs. In addition, the
production of renewable fuel helps these
companies lower their compliance costs.
ENHANCED FUEL POOL
The unique UOP Renewable Jet Fuel process
efficiently converts waste feedstocks, non-
edible fats, oils and greases into a high-
performing, renewable diesel or jet fuel.
That’s a huge return from feedstocks that
were previously mere waste materials.
™
Honeywell Green Diesel produced by the
process has a cetane value of 80 — much
better than the cetane value of traditional
diesel, meaning better operating efficiency.
Unlike biodiesel, renewable diesel produced
using the UOP process is chemically
identical to petroleum-based diesel and
can be used as a drop-in replacement in
vehicles with no modifications required.
Refineries can expand the diesel pool by
blending this high-quality supply with lower-
quality blendstocks. Additionally, Honeywell
Green Diesel is compatible with existing
fuel distribution and delivery infrastructure.
Honeywell Green Jet Fuel™ has shown less REVAMP FOR LESS THAN
emission of particulate matter and higher energy
1/3
density in flight, allowing aircraft to fly farther on
less fuel. When blended up to 50% with petroleum-
based jet fuel, this super efficient fuel offers
significant advantages over traditional fuel. It’s
a drop-in replacement that requires no changes
to aircraft technology or fuel infrastructure, and it
meets or exceeds critical jet fuel specifications.
of the capital investment
of a new plant
MEETING ENVIRONMENTAL
CHALLENGES Making renewable
In addition to increasing profits and lowering
fuels dramatically cuts
the cost of meeting today’s compliance
compliance costs -- save
requirements, creating renewable fuels using
$
40-100
the UOP Renewable Jet Fuel process is simply
the right thing to do. Greenhouse gas emissions
from the renewable diesel and renewable jet fuel
are up to 85% lower than fuel from petroleum.
NOT LIMITED TO REVAMPS PER BARREL
for payback in just 1 to
Revamping with the UOP Renewable Jet Fuel 3 years*
process gives refineries a new income stream *depending on market conditions
with capital costs much lower than building a new
unit, but the technology also offers advantages
INTERESTED IN DISCUSSING
for new refineries. Foremost is that the process
RENEWABLE REVAMPS WITH
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Compliance costs are also reduced right away.
Simply put, whether you wish to increase profits
at your current refinery or you’re planning to add
a new unit, the UOP Renewable Jet Fuel process
will increase production, lower compliance costs
and deliver long-term profits that aren’t subject
to the wild swings of crude oil prices.
More Information Available
To learn more about UOP renewable fuel technologies, visit www.uop.com/renewables.
©2015 Honeywell International, Inc. All rights reserved.
 Automation JOSEPH SCALIA, SENIOR CONSULTANT
Strategies ARC Advisory Group
Safety lifecycle management challenges
in hydrocarbon processing plants
Although they are mandated by functional and process safe-
ty standards, such as ISA-84 and IEC 61511, many automation
and safety instrumented system (SIS) vendors to the down-
stream hydrocarbon processing industry (HPI) do not provide
safety lifecycle management software that extends beyond the
initial work performed to commission the SIS logic solver. As
a result, in many cases, only the bare minimum safety instru-
mented function (SIF) proof testing has been performed for
the most critical protective and mitigative functions.
While the mandated functional safety requirements speci-
fication (SRS) should provide a description of how safety
should be maintained within a process or plant area, ARC Ad-
visory Group has observed that most vendors do not support
these requirements with an appropriate suite of supervisory
software to maintain, enforce and prove compliance. This of-
ten puts an unnecessary burden on end users, to comply fully
with all functional safety requirements, including the ability to
prove compliance.
So, what should end users be thinking about as necessary
parts of their safety lifecycle compliance program? For a start,
do you use electronic safety lifecycle management tools to help
meet traceability requirements, or are you attempting to do
this manually? Do you have any tools beyond what you used to
perform your initial hazardous operations (HAZOP) and layer
of protection analysis (LOPA)? What about your SIS logic
solver? Can your current software tools “talk” to each other to
share data, or do you frequently have to re-enter the same data
into different tools?
Automation suppliers typically offer tools to help owner-
operators determine required safety integrity levels (SILs).
However, that is where the functionality often ends. While
some suppliers offer rudimentary utilities to help trace and
document changes to the logic solver programming, most do
not offer a full suite of “fully baked” software that meets the
other traceability requirements for maintaining safety instru-
mentation. Current limitations to most automation suppliers’
solutions require extensive custom integration, which is both
costly and time consuming.
Do you know if you are really in compliance? IEC 61511,
ISA TR84.00.04, OSHA 1910 and other standards define spe-
cific requirements for effective safety lifecycle management.
All of these organizations emphasize that being in compliance
with safety lifecycle management requirements should extend
beyond just proving the compliance of initial site acceptance
testing and commissioning of production equipment, control-
lers and processes.
This requires identifying and documenting that equipment,
controllers and processes are running as designed day after day,
week after week, year after year. Processes change, equipment
ages and wears, procedures become “culturally blurred,” and peo-
ple become complacent, believing the results of their basic safety
key performance indicators (KPIs). Historically, this is when the
serious “big incident” occurs, with the resulting tragic loss of life
and damage to a company’s financial success and reputation.
Since this is a complex problem with potentially serious rami-
fications for noncompliance, ARC recommends that owner-
operators return to an appropriate “beginning point” to obtain
the needed clarity. Start with a thorough review of your existing
HAZOPs, the origin of your SIF designs and SIL requirements.
Identify the specific real-time and historical data needed to
confirm that you are meeting your SIL requirements. Track the
status—automatic, manual and bypassed—that represent your
control loops and their safety functions. Ask your vendors if they
have software that does this for you automatically.
Reread the standards, focusing specifically on the safety
life cycle and your current operations. Is your current safety
requirements specification comprehensive enough? Does it
compel your organization to operate, maintain and verify the re-
quired functionalities? Do you understand what data you need
to comply with OSHA 1910, IEC 61511 and ISA TR84.00.04,
API 14C and OLF 70?
Most importantly, are you doing your periodic safety proof
tests? Are you recording all the correct information? Are you
ensuring that your knowledge workers are competent, qualified
and appropriately certified? Are you keeping electronic or pa-
per records of your proof tests for each and every safety instru-
mented function in your operation? If so, are you performing
everything on time?
If you aren’t aware of and/or keeping records of how of-
ten you defer a proof test or compromise a layer of protection
against any of the many defined hazards, consider taking ad-
vantage of the broader process safety management solutions
offered by several consulting and engineering companies with
skills and experience in these areas.
JOSEPH SCALIA covers process safety and functional
safety for the chemical, oil and gas, power generation
and manufacturing industries. He has over 30 years of
experience in industrial automation for discrete
manufacturing and process control industries. Mr. Scalia
has a BS degree in electrical and controls engineering
(BSEE) from Kettering University, and is a TÜV-certified
functional safety engineer. He has also received formal
instruction in software architecture, software modeling,
threat modeling and cybersecurity.
Hydrocarbon Processing | JULY 201521
We create
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Global
Investment in Egypt’s downstream on the rise
Egypt is adopting a mix of investment
strategies in refinery upgrades and con-
struction of new capacity to meet the na-
tion’s target for more high-quality light and
middle distillate products and a reduction
of transportation fuel imports. Such in-
vestments are materializing as the govern-
ment becomes more stabilized and the
economy shows strong signs of recovery.
Demand growth for petrochemicals.
The increasing demand for petrochemi-
cal products, especially ethylene, and the
global shift to cleaner Euro-V-grade diesel
are the main drivers for heightened in-
vestment in the Egyptian refining sector.
Egypt, with total oil production of 680
Mbpd, operates nine refineries with an es-
timated combined capacity of 704 Mbpd.
It is the largest refining network in Africa,
as summarized in TABLE 1.
Egypt’s refining output averages 445
Mbpd, suggesting that its refinery uti-
lization is only approximately 63%. In
contrast, the US Energy Information
Administration (EIA) estimates that the
country’s refinery throughput dropped
by 28% between 2009 and 2013 “despite
growing domestic consumption (forc-
ing) Egypt to import petroleum products
to make up for the shortfall.”
Imports. Reduction of fuel imports is
the focus of $3.7-B investment in up-
grades to the Egypt Refining Co.’s Mo-
storod refinery in the Greater Cairo area.
Approximately $11.7 B was spent on
fuel imports in 2013, according to Egypt
Central Bank. The project is financed by
Qalaa Holdings, previously Citadel Capi-
tal, and is expected to be onstream within
two years. According to Qalaa Chairman
and Founder Ahmed Heikal, the project
is fully funded and 50% complete, put-
ting it on track to begin production in
2017 as planned. The new facility will
receive low-value fuel from Cairo Oil
Refinery, operated by Egyptian General
Petroleum Corp., and will upgrade the
SHEM OIRERE
Guest Columnist
fuel to higher-value middle and light dis-
tillates. Domestic demand for distillates
is increasing; the new capacity is aimed
at reducing imports.
“At present, demand for diesel and
gasoline is rising fast and outstripping
domestic supplies,” Heikal said. “The
government of Egypt is simultaneously
gradually decreasing its sizeable fuel
subsidy. Qalaa Holdings and partners
saw opportunities for a refining project
that would ease reliance on imports and
produce cleaner-burning fuels as one of
the cornerstones of the country’s energy
security policy.” The refining upgrade
project will have the capacity to produce
4.2 MMton of refined products, which
includes 2.3 MMt of Euro V diesel.
Some of Qalaa’s equity partners in the
project include Egyptian General Petro-
leum Corp., Qatar Petroleum Interna-
tional, International Finance Corp. and
Germany’s DEG. With financial backing
from the Japan Bank for International
Cooperation, Nippon Export and Invest-
ment Insurance, Export-Import Bank of
Korea, European Investment Bank, the
African Development Bank and Mitsui &
Co., the refinery has already signed a 25-
year off-take agreement with Egyptian
General Petroleum Corp. at international
prices, according to Heikal.
TABLE 1. Egypt’s crude oil refineries
Refinery operator
El-Nasr Petroleum Co.
Cairo Petroleum Refining Co.
Alexandria Petroleum Co.
Middle East Oil Refinery
Amreya Petroleum Refining Co.
Suez Petroleum Processing Co.
Assiut Petroleum Refining Co.
Cairo Petroleum Refining Co.
Total
Sources: Arabian Oil & Gas and Egyptian General Petroleum Corp.
Despite the ongoing global crude price
instability, Egypt is planning other new
investments at existing refineries to in-
crease throughput capacity and upgrade
the refinery scheme to yield cleaner fuels
with less sulfur content. Egypt produces
three crude blends of Suez, Belayim and
Western Desert with a sulfur content of
1.4%, 1.6% and 1.7%, respectively.
Topping the list of Egypt’s refinery
sector investment is the $1.4-B expan-
sion of the Middle East Oil Refinery
(MIDOR) to increase production ca-
pacity from 100 Mbpd to 160 Mbpd.
The refinery plans to complete the ex-
pansion by 2017. According to the re-
finery’s management, there is high eco-
nomic feasibility of the expansions that
will increase income by 18% and transfer
MIDOR from third- to fourth-genera-
tion technology. The MIDOR refinery
expansion would boost middle distil-
late production, especially diesel, by
maximizing utilization rates of existing
processing units and upgrading refined
products to meet Euro V specifications.
In April, MIDOR signed an engineer-
ing, design and licensing contract with
UOP LLC, a Honeywell company. UOP
had previously provided processing and
licensing for eight of MIDOR’s process-
ing units, while three other units have
Location Nameplate capacity, bpd
El Suez 100,000
Mostorod (Cairo) 142,000
Alexandria (El Mex) 115,000
Alexandria (Sidi Kerir) 100,000
Alexandria 75,000
El Suez 68,000
Assiut 50,000
Tanta 54,000
704,000
Hydrocarbon Processing | JULY 201523
 Global

been licensed by Mannesmann KTI and
Bechtel Corp. With the new expansion,
this refinery will increase product output
to 245 Mton of butane gas, 1.3 MMton of
gasoline, 3.2 MMton of diesel, 570 Mton
of coke and 135 Mton of sulfur, accord-
ing to Egypt’s Ministry of Petroleum and
Mineral Resources.
Optimistic outlook. Both the ongoing
and planned refinery projects in Egypt
come at a time when market analyst Busi-
ness Monitor International (BMI) has
predicted growth in both upstream and
downstream investments in the country’s
hydrocarbon sector, particularly in the
petrochemical industry. However, delays
in bringing the announced projects on-
line are highly probable due to problems
in tapping natural gas resources. “Gas
shortages are plaguing the petrochemi-
cals and chemical fertilizer sectors,” ac-
cording to BMI’s Egypt Petrochemicals
Report Q1 2015.
London-based analysts estimate
Egypt’s present ethylene demand at 500
Mtpy. This volume is needed to sustain
downstream production, despite the pre-
vious year’s output falling below produc-
tion targets.
Egyptian Ethylene and Derivatives
Co. (Ethydco) is likely to commission its
olefins facility this year with the capacity
to produce 400 Mtpy of ethylene when a
consortium of Japan’s Toyo Engineering
Corp. and Egypt’s Engineering for the Pe-
troleum and Process Industries (Enppi)
completes construction of a polyethylene

Designed for (PE) plant in Alexandria.

More petrochemical capacity is also
anticipated in 2019. For example, Car-

Severe Service bon Holdings has commissioned its $6.8-

B petrochemical plant at Ain Sokhna.
Developers believe this facility will yield
Valves that improve plant 1.35 MMtpy of PE as supported by the
900-Mty olefins cracker.
performance and safety
Continent leader. Egypt is the largest
non-OPEC producer in Africa and the
largest oil consumer on the continent.
This nation accounts for 20% of the con-
tinent’s total refined product consump-
tion. Likewise, Egypt has been grappling
with oil and gas subsidies that hit an all-
time high of $26 B in 2012. The govern-
ment of President Abdel Fattah al-Sisi
wants to phase out fossil fuel subsidies
by 2019, thus narrowing the state’s bud-
get and encouraging investments in the
country’s hydrocarbon sector.
The International Monetary Fund
Strack’s HF-Acid gate, globe and check
(IMF) says that Egypt realizes that the en-
valves are designed for extended life even
ergy sector reforms and increased invest-
in the most severe service environments.
ments are critical to reducing energy sup-
Heavy walled castings increase the security
of valve performance. Our integral seat
ply bottlenecks, raising potential growth
design eliminates penetration of hydrofluoric and increasing exports. However, despite
acid between the body and seat, extending growing interest in private investment in
the seat life, providing for ease of mainte- oil, the IMF says that the willingness of
nance & repairability, and improving the investors to commit resources may be re-
overall life of the valve. Curtiss–Wright’s duced by recent falls in oil prices.
Valve Group is dedicated to providing
SHEM OIRERE has
engineered solutions that improve reported widely on the
operation performance and safety. business beat for Kenyan
newspapers The Daily
Nation, Kenya Times and
The People. He also
freelances, reporting
For more information, extensively on Africa’s
visit us on the web at energy, construction
and chemical industries
www.cw-valvegroup.com/AboutStrack.
for various international
publications. He
graduated from journalism school in London.
Select 154 at www.HydrocarbonProcessing.com/RS
24
 SHEENA MARTIN
Petrochemicals Contributing Editor
Higher international sales boost 2015 earnings
above forecast for many chemical leaders
Raw materials costs continue to stay low in the US thanks to
the shale boom, but the global decline in oil markets has eroded
selling prices for many of the nation’s domestic chemicals and
plastics producers.
As it turns out, a high raw volume of sales to Asia and Europe
has been the saving grace for chemical companies in 2015, as the
cost advantages from US-sourced ethane and propane remain
strong. Thus far, 2015 earnings reports for most of the industry
have come in ahead of analyst expectations, with many leaders
pointing to rising international volumes offsetting weaker prices.
“The oil market is projected to be more favorable behind
growing global demand,” Dow Chemical CEO Andrew Liveris
said during his company’s earnings call, although he warned of
economic uncertainty later in the year.
Asian sales rise. During the first quarter, Dow noted that
chemicals demand rose internationally, with a 5% boost in
emerging markets. Additionally, Dow said demand jumped
an encouraging 10% in its “greater China” business, buoyed
by a longer-than-normal Chinese New Year. Heavy restocking
from the end of March and through May was another encour-
aging factor.
Elsewhere, Huntsman and LyondellBasell also say they are
benefiting from Asian markets, with CEO Peter Huntsman
noting there seems to be a “general softening of market condi-
tions” across the board.
At the moment, China’s supply and demand balances ap-
pear tight due to a number of plant outages early in the year.
Moreover, even more outages were seen in the second quarter,
said LyondellBasell CEO Bob Patel.
Patel said these factors “should be positive for product sales
in Asia,” and should further tighten the global supply-demand
balance for products, such as polyethylene (PE).
US holds cost advantage over Europe. The biggest lin-
gering price advantage for the US petrochemical industry is
relative to Europe. As producers harvest shale basins, the ongo-
ing focus on “wet gas” provides a far cheaper alternative to oil-
based naphtha, which European petrochemical makers rely on
to make plastics. US petrochemicals, on the other hand, utilize
cheaper natural gas liquids (NGL).
LyondellBasell, which has operations extending outside of
the US, “produced almost 50% of our ethylene from raw materi-
als with the cost advantage to naphtha,” Patel said.
Huntsman also caters to Europe, the company’s largest mar-
ket, with higher sales in the continent offsetting lower-than-
average selling prices in all regions.
However, the currency exchange involved in increased sales
abroad negatively impacted revenues, with Dow and Hunts-
man attributing part of their decline in first-quarter net sales
to this effect. Meanwhile, Germany-based BASF saw earnings
rise, being on the favorable end of the currency dynamics.
Looking beyond 2015. The major chemical companies,
however, all claimed to be aligning their portfolios for long-
term growth and not just for 2015. The volatility of the mar-
ketplace, as evidenced by the recent crash in oil prices, made
this a strategy of necessity. This strategy consists of a flexible
portfolio—allowing for changes in emphasis of market seg-
ments based on profits—and innovation, while maintaining
work on strategic projects.
To that end, Dow said it continued to improve on its diverse
portfolio during the first quarter with its plan to spin off a major
portion of its chlor-alkali and downstream derivatives business.
“The transaction will enable us to continue our drive to grow
in our higher-value markets as we continue to go narrower and
deeper with our portfolio,” said Dow’s chief financial officer,
Howard Ungerleider.
BASF, Dow and Huntsman all spoke of research, efforts to
innovate and ongoing projects during their quarterly calls to
show the oil price environment is not slowing their momentum.
“We will continue to research and develop, as the challenges
stemming from an increasing population are far from being re-
solved,” said BASF chief executive Kurt Bock. “This is espe-
cially true for energy. We are looking for entirely new materials
to help make Germany’s energy transition successful.”
BASF is researching battery materials for electric cars to re-
duce the price, along with plastic components for the cars to
reduce their weight.
Meanwhile, Dow is working on a cogeneration project in
Brazil to supply power from eucalyptus biomass to the com-
pany’s largest plant in the country. Also, in late April, Dow
signed a deal to provide wind-generated electricity to operate
its Freeport plant in Texas—the largest integrated chemical
complex in the West.
Those projects, of course, are all long-term endeavors—
and that may not satisfy some investors who are seeking
quicker returns. But the uptick in international volumes has
kept current industry profits ahead of expectations, and that’s
enough to keep project momentum flowing as we head into
the second half of the year.
“It’s a volume and margin story,” said Liveris. “Whether it’s
plastics or our mix, we’re maximizing margins and minimizing
the effect of the volatility on our inputs.”
Hydrocarbon Processing | JULY 201525
Select 99 at www.HydrocarbonProcessing.com/RS
 Engineering A. SOFRONAS, CONSULTING ENGINEER
Case Histories http://mechanicalengineeringhelp.com

Case 85: Learnings on hydraulically fitted hubs

This article is a brief tutorial on hydraulically fitted hubs. It
is intended to alert the reader to major safety concerns when
removing hydraulically fitted hubs.

What is the purpose of a hub? Hubs connect one piece

of machinery to another, usually with some flexible coupling
between them. On straight-end shafts, hubs may be installed
by press fits or heating. On taper-end shafts, the hubs may be
heated and then advanced for a desired interference fit. One
problem is that the installers have only limited time to work
with the hot hub. When incorrectly positioned, it may have to
be removed. This has the potential of damaging the shaft end.

Why are hydraulically fitted hubs used? A method with

many advantages is to expand (dilate) the hub bore hydrauli-
cally and to advance it a known amount up the taper. When
the pressure is released, the hub is frictionally clamped onto
the shaft with the correct interference fit and torque holding
capacity. Keyless hydraulic fits are preferred for several reasons
and include:
• Greater torque transmission because the key (a stress
riser) is eliminated
• Minimal shaft gouging during removal
• No heating equipment needed for assembly and removal
• Shorter installation and removal time.
Likewise, there are some disadvantages that are manageable:
• Installation and removal of the hub can be hazardous
• Correct design and pull-up of the hub is critical
• Slippage is possible when sudden acceleration changes
occur.
Industries using high-hp equipment such as steam turbines,
large motor drivers or high-torque gear units prefer hydrauli-
cally fitted hubs. FIG. 1 is a simplified drawing of how these hubs
are installed and removed.
Installation. The hydraulically fitted hubs are installed by
dilating the hub with high hydraulic pressure. As the bore ex-
pands (dilates), the hub is advanced up the taper with the low
hydraulic pressure fixture. Releasing the pressures produces a
friction interference fit, which clamps the hub and shaft togeth-
er. The low-pressure pull-up fixture is removed, and the safety
nut is put in place. In special designs, O-rings are not needed.
This removes the stress concentration caused by the O-rings
grooves, and it allows for a higher torque capacity.
What are the major safety concerns? As shown in FIG. 1,
the pop-off or hub is removed. When there is distance between
the machines, it is possible for someone to be standing directly
in line with the hub as it is being removed. During this author’s
career, he has witnessed a hydraulic hub removal without a safe-
FIG. 1. Keyless hydraulically fitted hub.
ty nut. With a loud “bang,” the hub traveled several feet, with
some very unfortunate consequences.
To prevent a recurrence, an analysis was performed to show
the energy stored in the hub when released. This was illustrated
by determining how fast and far the hub would travel. Also, the
analysis indicated that, in one case, a typical hub could pop off
at a velocity of 25 mph and travel a distance of 20 ft or more.
What is the lesson learned? The calculation was approxi-
mate, but it does show that taper-fitted hubs when removed
should be treated as one would handle a loaded gun—stay out
of the line of fire. Even the threads on a safety nut can strip off
with the “pop-off ” impact. Also shown in FIG. 1, a lead washer is
used during removal. This washer reduces the impact of the hub
with the nut when it first “pops” by deforming and absorbing
some of the energy. All of the manufacturer’s safety precautions
must be followed in addition to securing the area in the poten-
tial flight path of the hub.
NOTE
Case 84 was published in HP in May. For past cases, please visit
HydrocarbonProcessing.com.
TONY SOFRONAS, D. Eng, P.E., was worldwide lead
mechanical engineer for ExxonMobil Chemicals before
retiring. He now owns Engineered Products, which
provides consulting and engineering seminars on
machinery and pressure vessels. Dr. Sofronas has
authored two engineering books and numerous
technical articles on analytical methods.
Hydrocarbon Processing | JULY 201527
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FAIL FAIL
For every $1 billion spend on a capital project,
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is at risk due to ineffective communication. overspends by more than 25%, the execution time is 50% longer, or there are
–2013 Pulse of the Profession, Project Management Institute.
severe and continuing operational problems into the second year of the project.
–Speed Kills, Klaver, Ali. 2012 Project Manager Magazine.

40 percent of projects in the oil and

gas industry are subject to budget
and schedule overruns.
–Capital Project Execution in the Oil and Gas Industry.

20%
M. McKenna, H. Wilczynski, D. VanderSchee. 2006 Booz
Allen Hamilton survey from 2006 of 20 companies
(super-majors, independents and EPC firms).

30 % cost savings

budget & schedule

OVERRUNS
anticipated value
DISAPPEARS Good front end schedule
39%
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40%
Up to 30 percent of anticipated value
disappears during the turnover/ much as 20% cost savings
commissioning and ramp-up and 39% schedule reduction
phases of new asset lifecycles. for total project design
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from project execution into operations. Article, 2012. Front End Planning. CII Special Publication 268-3.

67
PERSONNEL
TO
It takes an average of six to seven years to develop
new employees into autonomous petrotechnical
professionals who can make non-standard, original
technical decisions.
YEARS –2010 SBC Oil & Gas HR Benchmark, Schlumberger Business Consulting Energy
Institute, March 2011.

50% expected to
RETIRE
50% of experienced and managerial personnel in national
and international oil gas processing companies are Bring the most complex projects to
expected to retire in the coming decade.
–Society of Petroleum Engineers, “The Great Crew Change: A Challenge for Oil Company
SUCCESSFUL IMPLEMENTATION
Profitability”, April 16, 2011. www.emersonprocess.com/projectcertainty

E M E R S O N . C O N S I D E R I T S O LV E D .

Viewpoint
Advice for the downstream: Keep the faith
CHARLES T. DREVNA is a distinguished senior
fellow of the Institue for Energy Research and the
former president of the American Fuel & Petro-
chemical Manufacturers. He was president of the
trade association, formerly known as the National
Petrochemical & Refiners Association, from 2007
until this May. He joined the association in 2002
as executive vice president and director of policy
and planning.
At AFPM, Mr. Drevna led a staff that advo-
cates for petroleum refiners and petrochemical
manufacturers before Congress and the Executive
Branch on a broad range of public policy issues.
AFPM emphasizes the importance of petroleum
refiners and petrochemical manufacturers to
America’s economic growth and national security.
Mr. Drevna has extensive experience in legis-
lative, regulatory, public policy and marketplace
issues involving energy and the environment.
His previous positions include director of state
and federal government relations for Tosco, Inc.;
director of government and regulatory affairs for
the Oxygenated Fuels Association; vice president
at the Washington, DC consulting firm of Jeffer-
son Waterman International; several positions at
Sunoco, including vice president for public affairs
for Sun Coal Co.; director of environmental affairs
for the National Coal Association; and supervisor
of environmental quality control for the Consoli-
dation Coal Co.
Mr. Drevna received his BA degree in chemis-
try from Washington and Jefferson College and
performed graduate work at Carnegie-Mellon
University. He grew up in Pittsburgh, Pennsylva-
nia and worked as a laborer in a steel mill there
during summers while attending college.
CHARLES T. DREVNA
Distinguished Senior Fellow, Institue for Energy Research, and
Former President, American Fuel & Petrochemical Manufacturers
People who know me well know that I
enjoy listening to music. If you attended
American Fuel & Petrochemical Manu-
facturers’ (AFPM’s) 2015 Annual Meet-
ing, you’ll recall that I worked this love
of music into my remarks.
I asked attendees to “Don’t Stop Be-
lievin’” while subjecting them to a few
moments of the old Journey hit. This
sentiment is important for everyone in
this industry to consider because, de-
spite the many benefits and technologi-
cal advancements made possible by oil
and natural gas, the industry is often
viewed negatively. Every one of us as-
sociated with the industry must firmly
believe and remember that what we do
is important and that we have a long and
beneficial future.
Working in the refining and petro-
chemical industries for so many years, I
am too familiar with the fact that there
are many detractors intent on seeing
the demise of the use of the hydrocar-
bon molecule. Back in 2006, at an earlier
AFPM (then the National Petrochemical
& Refiners Association) annual meeting,
I was quoted as saying, “This industry
knows that Camelot is not just around
the corner.” Later in the same address I
stated, “The demise of the hydrocarbon
molecule has been greatly exaggerated.”
Although I was wrong about one thing
(Camelot was around the corner, not in
the form of renewable fuels, but in the
way of booming shale production), I was
right about the other. The hydrocarbon
molecule is here to stay.
In 2006, no one imagined that the US
would become one of the world’s largest
producers of oil and natural gas. Or that
this nation, once dependent on others
for energy, would begin to produce more
oil than we import and that we would
become a net exporter of finished petro-
leum goods.
But, instead of valuing our abundant,
efficient, easily accessible and affordable
energy resources, many view fossil fuels
as having reached the pinnacle. They
feel traditional forms of energy are in a
steady decline, inevitably to be replaced
by so-called “alternatives.” This dooms-
day rhetoric is factually inaccurate and it
places our economy and, ultimately, our
national security in jeopardy.
Sadly, this attitude comes not just
from the detractors, but also from some
in our own industry. This attitude is not
justifiable, and it is also foolish.
The list of benefits we bring to con-
sumers every day is long, from affordable
energy to good-paying careers to count-
less products that are made from oil and
natural gas, including plastics, fabrics and
medicine. What’s not to be proud of?
We have an opportunity and a duty
to promote our industry, not just for our
sake, but for the overall well-being of
the American economy and consumer,
and many around the world. Fossil fuels
have raised, and will continue raising, the
standard of living for billions of people
worldwide. It is coal, oil and natural gas
that will continue to lift developing coun-
tries out of poverty, provide them with af-
fordable sources of energy and secure the
power to bring them essential services.
My final days as the head of AFPM
took place in May at the annual meet-
ing, and one last sentiment I wanted to
get across then, again in musical refrain,
is that all of you are “Simply the Best,” as
Tina Turner expressed through this great
song. I am proud to have spent nearly 45
years of my life promoting fossil fuels and
happy that I can continue to do so.
We have been the driver of the econ-
omy of the past, we are the driver of the
economy of the present, and we will cer-
tainly be the driver of the economy of the
future. We should no longer be satisfied
to merely defend our industry. Rather,
we should be promoting it at every op-
portunity we get, because we are simply
the best.
Hydrocarbon Processing | JULY 201529
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 Day 1 Agenda:
Wednesday, 29 July 2015
7:30 a.m. Registration
9–9:10 a.m. Opening Remarks: Adrienne Blume,
Managing Editor, Hydrocarbon Processing
and Gas Processing
9:10–9:40 a.m. Keynote: The future of GTL—Why smaller-
scale GTL still makes sense in a low-oil price
world – Jeff McDaniel, Commercial Director,
Velocys
9:40–10:05 a.m. The Economics of GTL—Lesa Adair, Chief
Executive Officer, Muse, Stancil & Co
10:05–10:35 a.m. Coffee Break
Session One: The Future of Non FT GTL
10:35–11 a.m. Natural gas to aromatics – widening the
appeal—Joseph Gentry, Director of Global
Licensing, GTC Technology US, LLC
11–11:25 a.m. Natural gas utilization via small-scale
methanol technologies—Uday Turaga,
Founder and Chief Executive Officer, ADI
Analytics, LLC.
11:25–11:50 a.m. Havelide SystemTM—Stephen Boyd, Chief
Technology Officer, Petro Spring 11:30 a.m.–12:30 p.m.
11:50 a.m.–12:50 p.m. Lunch
Session Two: Syngas
12:50–1:15 p.m. Cost-effective syngas production for
optimized GTL—Tarun Vakil, Vice President
HYCO Technology and Product Development,
Matheson
1:15–1:40 p.m. Cost-effective syngas generation for small-
scale GTL plants—Dr. Ing. Peter Neumann,
Managing Director, Caloric Anlagenbau
GmbH
1:40–2:05 p.m. Coffee Break
2:05–2:35 p.m. Monetizing flared gas via high-efficiency,
small-scale gas to liquids technology—
Dr. George Boyajian, Vice President,
Business Development, Primus Green
Energy
Session Three: Project Updates and Demo
Technology News
2:35–3 p.m. GTL demo plant and project update—John
Royall, President and Chief Executive Officer,
Gulf Publishing Company
3–4 p.m. Panel Discussion: Demo/pilot plant
technology
Invited panelists include: Guido Radaelli,
Vice President, Engineering, Silvria
Technologies; Raj Suri, President,
EmberClear; Ravin Dave, Senior Project
Manager, Zeton Inc.; and others from
D’Arci noff Group
4 p.m. Closing Remarks: Adrienne Blume, Managing
Editor, Hydrocarbon Processing and Gas
Processing
Day 2 Agenda:
Thursday, 30 July 2015
7:30 a.m. Registration
9–9:10 a.m. Opening Remarks: Adrienne Blume,
Managing Editor, Hydrocarbon Processing
and Gas Processing
9:10–9:40 a.m. Keynote: TBD
9:40–10:15 a.m. Coffee Break
Session Four: Catalysts
10:15–10:40 a.m. The impact of catalyst-reactor performance
on commercial GTL plant design and
operation— Paul Schubert, Chief Operating
Officer, Velocys
10:40–11:05 a.m. Deactivation and regeneration of
commercial type Fischer-Tropsch co-
catalysts: A mini-review—Anders Holmen,
Department of Chemical Engineering,
Norwegian University of Science and
Technology
11:05–11:30 a.m. Advances in mixed alcohol technology—
Peter Tijm, Chief Technology Officer,
Standard Alcohol Company
Lunch
Session Five: Emerging Technologies
and Alternative Users
12:30–12:55 p.m. TIGAS – A versatile GTL process—Niels R.
Udengaard, Syngas Technology Manager,
Haldor Topsoe, Inc
12:55–1:20 p.m. PurePlus® Technology—Shell (invited)
1:20–1:45 p.m. Breakthrough in technology and economics
of gas-to-oil production—Dr. Vladimir
Mordkovich, Chief Technology Officer,
INFRA Technology, LLC
1:45–2:10 p.m. Cost-competitive production of alternative
diesel and jet fuel from natural gas and
seed oil via process integration—Mark Agee,
Vice President, Business Development and
Licensing, Emerging Fuels Technology
2:10–2:40 p.m. Coffee Break
Session Six: Trend: Waste to Fuel
2:40–3:05 p.m. Leading the way in waste-to-fuel—Greta
Calvery, Waste Management (invited)
3:05–4:05 p.m. Panel Discussion: The trend in waste-to-fuel
Invited panelists from: Maverick Synfuels,
BioFuels Power Corporation and others
4:05 p.m. Closing Remarks: Adrienne Blume, Managing
Editor, Hydrocarbon Processing
and Gas Processing
Hosted by:
 | Special Report
REFINERY OF THE FUTURE
How will oil refineries operate in the future? Which refined
products will be in high demand in 20 years? What licensed
process technologies will be used by existing and new refineries?
These are just a few of the questions now under debate. To remain
profitable, refiners must have the flexibility to adapt as the
global HPI reacts to changing market conditions and numerous
outside forces. New transportation fuels must be developed to
power late-model vehicles and energy-efficient engines. The
products and services from future refining operations will be
vastly different from those provided now. This month's special
report provides insight into the new technologies and trends
shaping the international refining industry.

Photo courtesy of Raffinerie Heide.

 Special Report Refinery of the Future
C. BOLOHAN and L. MANAFU, Rompetrol Rafinare S.A.,
Navodari, Romania; J. D. WARD, Bechtel Hydrocarbon
Technology Solutions, Inc., Houston, Texas

European refiner revamps delayed coker

to meet Euro 5 specifications
In this case history, the European refiner Rompetrol Rafi- DELAYED COKING PROCESS
nare SA upgraded its Petromidia refinery in Navodari, Roma- DCU is a thermal cracking process used to convert low-
nia. The project included revamping the delayed coker unit value petroleum residues, typically from vacuum distillation,
(DCU) to address existing operating problems.1 Rompetrol’s into higher-value liquid and gas products and coke. The pro-
coker experienced excessive daily air emissions, contaminated cess leaves behind a concentrated carbon material (solid coke),
water disposal issues and safety concerns related to the coke which may or may not have significant commercial value.
drum top head area. Problems were largely caused by the exist- Liquid yields can range from 60 wt% to 70 wt%. The DCU
ing open blowdown system, manual coke drum isolation valves process has many advantages over other residuum conversion
and ineffective control/safety interlock systems. processes. It is a reliable, low-capital process, with processing
A new closed blowdown system (CBS) was installed and the flexibility to handle a wide range of feeds. FIG. 2 is a typical flow
coke drum isolation valves were replaced with modern, motor- diagram of a DCU.
operated valves (MOVs) that were part of an interlocked safe- The purpose of the coker furnace is to heat the DCU feed to
ty system (FIG. 1). Likewise, the refinery staff developed new initiate coking reactions as rapidly as possible. The coke drums
operating procedures to meet the demands of the upgraded are designed to provide adequate residence time to complete
equipment. These modifications successfully addressed the these coking reactions and the volume needed to accumulate
environmental issues, and demonstrated improved unit safety the solid coke that is formed.
and efficiency during the acceptance performance test. The DCU process is batch-continuous, with a pair of coke
drums available for receiving the furnace effluent. One coke
BACKGROUND drum accumulates coke, while the corresponding offline drum
Crude oil refiners are always seeking ways to improve safety is steamed, quenched, drained, decoked, preheated and pre-
and productivity while meeting increasingly stringent environ- pared for return to service. Each coke drum goes through a
mental regulations. Rompetrol Rafinare, a member of the Rom- complete cycle, which includes both coking and decoking op-
petrol Group, met this challenge by revamping the Petromidia erations. The offline coke drum decoking steps are supported
refinery. The modernization program of the Petromidia Refin- by the CBS. New blowdown systems are closed systems to:
ery increased processing capacity from 3.5 MMty to 5 MMty of
raw materials, with exclusive production of Euro 5 fuels.
Initiated in 2006, the program focused on nine major proj-
ects, including the construction of five new processing units:
mild hydrocracking, hydrogen production, sulfur recovery
(SRU), nitrogen production and a new flare. Additionally, four
existing process units were modernized (gas desulfurization,
conversion of the vacuum distillate desulfurization unit to a die-
sel desulfurization plant, a catalytic cracking unit and an SRU).
Incorporating best available technology (BAT) standards,
the Petromidia refinery successfully completed this transition
to align all processing units to meet EU environmental require-
ments. The last project was commissioned in 2013; it involved
the revamp of the existing DCU.
The DCU capacity was adequate to avoid restricting the
refinery throughput. However, it was experiencing significant
environmental problems due to the existing open blowdown
system. To comply with EU regulations and possibly enhance
FIG. 1. The new CBS at the Petromidia refinery.
safety, Rompetrol decided to modernize the DCU.
Hydrocarbon Processing | JULY 201533
 Refinery of the Future
• Minimize noise, air and water pollution
• Condense and collect steam and hydrocarbon (HC)
vapors generated during the steam stripping, water
quenching and back-warming steps of the decoking cycles
• Condense and collect the steam and heavy HC vapors
generated during coker startup and shutdown, as well as
during coke drum overpressure upsets.
The modern CBS was selected for the revamp of the Rom-
petrol unit. FIG. 2 shows the sections modified in this project
as shaded in blue. The isolation valves around the coke drums
were replaced to allow for safer, more efficient offline drum op-
erations. New tie-ins from the CBS to the fractionation section
were also done.
PROJECT DEFINITION AND EXECUTION
Rompetrol contracted a technology licensor to do the revamp
design of the DCU and replace the existing open-blowdown sys-
tem with a new CBS.1 In addition to the blowdown system, other
parts of the unit were upgraded. The manual coke drum isola-
tion valves were replaced with MOVs; top unheading valves were
installed; and the steam/air decoking system was automated.
Other sections of the unit were targeted for upgrading, but were
not implemented at this stage. The project goals were to:
• Eliminate the environmental problems
• Upgrade the safety of the DCU by installing modern
isolation valves and top unheading valves; bottom
unheading valves were targeted for a later implementation
• Improve safety by installing an interlock system for safe
coke drum valve operations
• Recover all liquid HCs from the offline coke drum
operations for reprocessing within the unit and
eliminate regular flaring or venting of gas from the
blowdown system
• Recover all water from the offline coke drum operations for
recycling through an existing sour water stripper (SWS).
Unstabilized naphtha
Gas recovery
Lean sponge oil
Rich sponge oil
Fractionation
and preheat
section
Fresh feed
Furnace
charge
Coke drum
vapor
Offgas
Fuel gas
Steam from
water quench
Furnace and
coke drum
Coke drum
section
(offline)
Velocity
steam
Backwarm
effluent
Quench water Steam-out
steam
Coke product
FIG. 2. Process flow diagram of the DCU.
34JULY 2015 | HydrocarbonProcessing.com
DESIGN BASIS
The DCU’s design fresh feedrate was 143.8 tph (21,937
bpsd) of a mixture of vacuum residue (VR) and FCC slurry
oil (95 wt%/5 wt%). The unit products included offgas to the
amine plant, coker naphtha, light coker gasoil (GO), heavy cok-
er GO and specialty coke. In this case, the specialty coke was
not anode grade, but sponge coke that was required to meet spe-
cific market requirements.
To determine the new blowdown system capacity, yields
were developed for the design feedstock, and the coke drum
capacity and cycle time were confirmed. The blowdown system
was also designed to process two additional streams:
• An external refinery slop-oil stream with a maximum
feedrate of 15 m3/h
• An emergency purge-oil stream from the existing
coker heater, which had previously been sent to the
open blowdown system. The residence time had to be
made available in the quench tower for this potential
emergency stream.
FIG. 3 shows a simplified flow diagram of the new CBS.2
Design features. A revamp is frequently more demanding
than a grassroots design. Experience is necessary to avoid pit-
falls and find the most cost-efficient path. Such projects require
team work from the technology provider and the operating
company during the project.
CBS. The CBS recovered all offline drum effluents and elimi-
nated flaring. This system recovered all HCs for reprocessing in
the unit and water for recycling through a SWS. The CBS was
also required to condense and collect the steam and heavy HC
vapors generated during coker startups and shutdowns, as well
as the external refinery slop oil and heater coil emergency purge.
Relief through the CBS. The CBS also served as a relief
system for the discharge of the coke drum relief valves. Other
systems were considered for the coke drum relief valves, such as
following the existing practice of discharging the relief valves to
Fuel gas the fractionator. If the relief valves open, this practice can result
C3/C4 in a major cleanup of the fractionator bottom section, and it may
Stabilized result in tray damage.
plant naphtha A preferable solution is to discharge the coke drum relief valves
Sour water to the quench tower, where a similar cleanup may be required.
Sour water However, with simpler and more robust internals, the quench
Light coker GO tower should be more readily cleaned and able to avoid damage.1
Heavy coker GO In addition, the existing flare-header design temperature was
low, and cooling of the coke drum relief load was required. Relief
through the CBS condenser allowed this consideration to be met.
Light
Dual-duty blowdown condenser. The relief load cooling
slop oil requirement required a disproportionately large blowdown con-
Heavy denser. This became an issue due to space limitations. However,
slop oil the location of the large blowdown condenser and associated
piping was carefully managed during detailed engineering and
Closed
blowdown
was fitted into the available plot space.
system
Sour
water
Relief devices in the CBS. Normally, because of the robust
nature of coke drums, the set pressure of the coke drum relief
valves is high enough so that relief valve settings in the CBS do
not pose a backpressure problem. Typically, the coke drum relief
valves discharge to the CBS, and the relief valves in this system
discharge to the flare. For a revamp situation, the set pressure
of the existing coke drum relief valves are frequently lower than

that for a grassroots unit, and care must be taken to ensure that
there will be no backpressure problems due to the relief valve
settings in the CBS.
In Rompetrol’s case, the existing coke drum relief valves were
set at 5 barg. To satisfy the backpressure requirements on these
relief valves and the maximum pressure drop through the CBS
during relief, it was decided to use a high-integrity pressure sys-
tem (HIPS) valve on the settling drum. As long as the HIPS
valve is set up appropriately, it will have an equal or higher reli-
ability than a regular relief valve.
Gravity-drain blowdown header. A major advantage of the
new design is that the condensate drum and pumps used for send-
ing backwarm liquid to the quench tower are not needed. This
system is known to be prone to operating difficulties that were
simply avoided in this revamp. Instead, a gravity-drain blowdown
header was installed so that the coke drums could be drained
to the quench tower. To achieve this, the elevations of the coke
drums, the new blowdown header and the inlet to the new quench
tower had to be carefully evaluated during an onsite review.
Gravity-drain backwarm to fractionator. Gravity-draining
the backwarm condensate to the existing fractionator was also
assessed as feasible, and it was included in the design. Gravity-
draining the coke drums to the quench tower and the fraction-
ator is a proven concept.1
Low-cost depressuring of coke drums. In many DCU re-
vamps, an ejector is included in the CBS to depressure the coke
drums before venting to atmosphere. A vapor line from the set-
tling drum is typically tied into the flare header. In Rompetrol’s
case, the existing flare-gas-recovery compressors were used to
reduce the pressure in the CBS and coke drum prior to isolating
the coke drum from the CBS and venting to atmosphere. The
ejector option was not required.
Safety interlock matrix. A safety interlock system was in-
stalled for the coke drum isolation valves. This was based on
the matrix provided in the licensor design package, and it was
expanded during detailed engineering by Rompetrol and the
local contractor. The provided matrix is the minimum required
to avoid sending HCs to atmosphere, and it is frequently ex-
panded to avoid upsets due to operator error. This is fine as
long as the system does not become so complex that it limits
operational flexibility.
Automation of coke drum structure operations. The level
of automation of the coke drum switch and isolation operations
was considered. It was recommended that the board operator
and structure operator work together to confirm via both DCS
screens and local observation that the coke drum operations are
conducted safely.
The board operator supervises the operation and is in radio
contact with the structure operator. This operator acknowledg-
es that required procedures have been met and then authorizes
the structure operator to activate the appropriate motor-oper-
ated valves from local panels on the switchdeck. The structure
operator also manually turns the appropriate small steam-purge
valves associated with the major valves and piping. The struc-
ture operator performs the actuation of valve movement from
local switchdeck panels, and not the board operator. The pro-
cedure is done so that proper valve movement can be visually
confirmed. The board operator should confirm the new valve
position on the DCS screens.
Refinery of the Future
In Rompetrol’s case, not all coke drum isolation valves were
automated at this stage (e.g., drain, steam and water valves).
The structure operator was still required to manually turn
some of the isolation valves and report to the board operator
when completed.
Water handling. Modifications to the existing water han-
dling system including the fines settling basin and quench water
storage tank were proposed. These changes were not required
by Rompetrol.
Operating guidelines. The licensed package included op-
erating guidelines from which Rompetrol developed its own
detailed operating instructions. The addition of the new CBS
required a philosophical change in the way some operations
were completed. For example, backwarming procedures for
coke drum warmup during startup and normal operation were
significantly impacted. The coke drum quench procedure was
also changed. Instead of overflowing the coke drums at the end
of the water quench, they were now filling the drums to about
2 m above the coke bed, pressure draining while adding top wa-
ter, then venting to atmosphere at less than 0.14 barg.
Inspections and startup. Piping modifications were made
to accommodate the new MOVs and the tie-ins to the new CBS.
Licensor inspection required changes primarily to ensure that
the risk of plugging with batch usage was minimized, particu-
larly for the switchdeck piping. Also, coke drum thermal growth
issues were identified at the cutting deck that required and re-
ceived attention. Rompetrol worked extremely efficiently in
making some piping changes and adding steam purges prior to
commissioning and startup.
Rompetrol and the DCU technology licensor worked to-
gether during precommissioning and startup, and a smooth
startup was achieved on April 30, 2013.1 The performance test,
conducted on Oct. 29–31, 2013, comfortably demonstrated
that the new CBS could support the targeted fresh feedrate.
Unit performance. The main factors affecting CBS perfor-
mance, for a given coke drum size, are the quench time and the
backwarm time. During the performance test, the time duration
for these operations did not exceed the design time durations.
To flare PC
Blowdown condenser
PC
FC To fractionator
overhead condenser
Settling drum
From coke
Blowdown
drums
quench
tower
LC
Light slop oil to
fractionator or
quench tower
LC Condensed
FC water to SWS
FC Heavy slop oil to coke
drum overhead quench oil
FIG. 3. New CBS.2
Hydrocarbon Processing | JULY 201535
 Refinery of the Future
As long as the design time durations are not exceeded, and there
is no overlap in offline drum operations, the CBS should be ca-
pable of supporting higher fresh feedrates to the unit, with an
associated lower cycle time. TABLE 1 lists the performance test
durations for offline coke drum operations.
Coke drum capacity. The selection of the type of coke drum
isolation valve (ball or wedge plug) can impact the amount of
fines carried over from the coke drums. With the installation of
steam-purged ball valves, steam-purged unheading valves and ad-
ditional line steam purges, the amount of steam entering the coke
drums can be higher than in previous operations. This impact
can be much higher if the unheading valve steam purge increases
over time due to seal wear and upsets. The increased steam con-
TABLE 1. Performance test times for offline drum operations
Steam out 2 hours
Water quench 5 hours 20 minutes
Drain 2 hours (ranged from 1.4 to 2.7 hours)
Unheading and coke cutting 3 hours
Standby 2 hours
Reheading and pressure test 1 hour
Backwarm to CBS 2 hours (ranged from 1.5 to 2.5 hours)
Backwarm to fractionator 6 hours (ranged from 5 to 7 hours)
Total 23.5 hours (ranged from 22.6 to 24 hours)
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sumption is usually more of a concern for the bottom unheading
valves. Regardless, the total amount of steam entering the coke
drums should be carefully determined. In Rompetrol’s case, the
additional steam resulted in a slightly increased coke drum vapor
velocity that did not increase fines carryover significantly.
Coke morphology. Shortly after startup, shot coke was pro-
duced for several drums and represented a major issue as the
coke market required sponge coke. The shot coke produced was
formed due to a high percentage of asphaltenes in the feedstock.
To suppress the shot coke formation, in addition to adjust-
ing coke drum operating conditions, FCC slurry was introduced
into the feedstock so that sponge coke was again produced. Al-
though not part of the initial scope of work, Rompetrol consult-
ed with the DCU licensor on this issue.1 The traditional “rule of
thumb” for predicting whether shot or sponge coke will be made
is to calculate the mass ratio of CCR to asphaltenes in the feed. If
this ratio is less than 2, production of shot coke is likely. This rule
is neither accurate nor particularly useful in Rompetrol’s case be-
cause asphaltene analysis of the feed was not typically done, and
it would take about three days to perform.
A more reliable approach to determine the morphology of
the produced coke is based on parameters that are readily avail-
able for most feedstocks. For unusual or specific feeds, labora-
tory analysis is performed on the DCU feedstock to confirm the
predictions and to account for commercial operation.
Review. The DCU revamp was successfully executed by Rom-
petrol, and is presently meeting all the project goals. The success
of this revamp project was largely due to the effective teamwork
between Rompetrol, local contractors and the DCU technology
licensor. The cooperative nature of this team allowed the proj-
ect to be defined and executed efficiently. More importantly, the
unit started up safely and performs satisfactorily.
NOTES
1
Bechtel Hydrocarbon Technology Solutions (BHTS) purchased ThruPlus tech-
nology from ConocoPhillips in 2011.
2
BHTS closed blowdown system.
CRISTIAN BOLOHAN is the process director within Rompetrol Rafinare, company
member of The Rompetrol Group. He joined the Rompetrol team in 2003. During
the development and modernization of the Petromidia refinery, as progect
manager, he coordinated and implemented projects. Mr. Bolohan graduated from
the Faculty of Physics, Chemistry and Technology of Processing Crude Oil and
Petrochemicals within Ovidius University, Constanta, Romania, and he holds an
MS degree in oil and gas management. In his present position, he is responsible for
the design, coordination and success for the development plan of the Petromidia
refinery, in accordance with the Rompetrol Group strategy, as well as the
optimization of the refining processes within the business unit.
LUMINITA MANAFU has over 30 years of experience in operations and process
engineering for the delayed coker, amine and sulfur recovery, flare-gases recovery
units with Rompetrol Rafinare S.A. She graduated in petrochemical engineering
from the Oil and Gas Institute, located in Ploiesti, Romania. She has been involved
in many projects, startup and performance testing at the Petromidia refinery.
JOHN D. WARD has over 35 years of experience in process engineering design
and operations, particularly in refining and petrochemical operations. He has
specialized in the ThruPlus delayed coking technology for more than 15 years,
and has been involved in many delayed coker startups and performance tests.
As a coking technologist with Bechtel Hydrocarbon Technology Solutions, Inc.
(BHTS), he has led the production of process design packages for licensees and
provided technology support for business development. Mr. Ward holds a BS
degree in chemical engineering from the University of Manchester, Institute of
Science and Technology, UK.
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 Special Report
Use advanced automation and project
management to simplify refinery construction
Process automation in oil refiner-
ies is undergoing major changes, driven
by customers frustrated by what they
consider to be slow and incremental ad-
vances from the main automation origi-
nal equipment manufacturers (OEMs)
in the industry. ExxonMobil has become
a de facto industry representative and is
driving vendors like Yokogawa and oth-
ers to reevaluate how large-scale automa-
tion projects are implemented.
The customer message is clear: proj-
ects take too long; they are too engi-
neering-intensive; and the automation
systems frequently become the critical
path in the final stages, often causing the
project to fall behind schedule. In many
instances, automation engineers can le-
gitimately point at process engineers and
others for last-minute changes, but with
little consolation from the owners.
With several hundred major automa-
tion projects executed globally each year,
the industry-leading automation OEMs
can draw on several decades of experi-
ence working in various industries and
with a range of technologies. Individually
and collectively, they are applying their
knowledge of best automation practices
and lessons learned to answer the ques-
tion, “How can we do things better?”
As a result, automation OEMs are be-
ing guided by the industries they serve to
develop and improve solutions that pro-
vide the reliability, operability and safety
expected from control system platforms.
OEMs are also being asked to improve
methodologies for assembling, execut-
ing and deploying a complex process
solution with improved efficiency, lower
installation cost and greater adherence
to schedule.
Most of the efforts fall into two main
categories: project management and
Refinery of the Future
E. SPIROPOULOS, Yokogawa Corp. of America,
Houston, Texas
technical improvements. These two cate-
gories are deeply intertwined on multiple
levels and, as such, can work together to
improve projects.
Serial to parallel. For the past few de-
cades, projects have followed the same ba-
sic path shown in FIG. 1. Each phase takes
place in a serial fashion, as each builds on
the previous effort:
1. The design phase typically includes
development of functional detailed
specifications and agreement on
project engineering standards,
schema and, sometimes, resources.
2. The design phase leads to the main
engineering activities, which can
be grouped into hardware-related
and software-related activities. It is
desirable to have as much parallel
engineering as possible with these
activities, and the conventional
model achieves this up to a certain
point. Control logic, graphics, alarm
Conventional project execution
Project start
Definitions, standards, Control logic,
detailed functional graphics, alarms,
specifications procedures
Design
Application
Hardware
HW, cabinets,
marshalling,
ship to site
signal termination
FIG. 1. Traditional project management techniques follow a serial process, with each step
following the previous one in sequence.
configurations, tuning parameters,
etc., can be application-engineered
by a software team in a single
location or multiple locations. At
the same time, controllers, input/
output (I/O) cabinets, marshalling
boxes and enclosures can be
manufactured, wired and tested by
another specialized team.
3. The significant dependence of
application engineering on the
design hardware is a challenge.
An automation application must
be configured to fit the very
specific controller, I/O module,
marshalling, termination and
wiring plan for which it is designed.
4. Upon site delivery, the application
piece is bound to the hardware
loop by loop. Late binding allows
enough time in the schedule
for project design changes to be
implemented in both hardware
and software before final binding.
Software to Project delivery
hardware and startup
binding
High application
dependency on
hardware and
field wiring
Field installation
Loop check
HW installation, Project risk
wiring, device mitigation
configuration,
Hydrocarbon Processing | JULY 201539
 Refinery of the Future

Flexible binding allows for these 5. Either after or during loop plant starts up. Depending on the
changes, as well as reconfiguration, commissioning, the owner signs off business environment, schedule
at any point in the project. on the automation project, and the flexibility in startup may be
acceptable, but late is never desired.
If events unfold as planned, then the
ExxonMobil’s plan for project can stay on schedule, although
the schedule might be longer than the
self-configuring field devices company considers desirable. Howev-
er, most projects do not run exactly as
T. MADDEN, ExxonMobil Development Co., Houston, Texas
planned because process engineers may
Presented at the Yokogawa Users Conference and Exhibition, September 2014 realize a vessel is not in an ideal location,
the distillation tower is not large enough,
The concept of self-configuration devices can be explained with the term DICED: or another pump needs to be added at
some point to maintain sufficient flow.
DETECT: When a new (to the system) HART-enabled device is connected to the Any of these process equipment changes
configurable I/O, the I/O channel detects that current is flowing where it previ- will create process automation system
ously was not. changes by moving or adding hardware
and related instrumentation.
INTERROGATE: The I/O channel transmits the HART command requesting As FIG. 2 shows, such changes can ex-
the device tag. The HART-enabled device responds with its tag. (ExxonMobil tend the time necessary for one or more
requires HART 6 or HART 7 devices with long tags.) project phases, ultimately stretching out
If the new device is not a HART-enabled device (a shutoff valve, for example), the schedule and eventually pushing the
it will obviously be unable to respond to the HART tag name request. In this case, project past the startup deadline. The au-
the DICED process is aborted, but a notification to the user can still be generated tomation system now becomes the criti-
informing that there has been a change in the field wiring, and it is likely that a cal path item holding up the schedule.
new direct-input or direct-output device has been installed.
Technical aspects of the problem
CONFIGURE: Once the system has detected and determined that there is a new and solution. Compressing the sched-
HART-enabled device, the system can configure that device with its engineering ule by including more parallel, instead of
range, engineering units and other configuration information. serial, activities depends on the ability to
ExxonMobil’s plan is to purchase field devices with only the tag preconfigured decouple many elements of the process
and then allow the system, which generally contains the latest data, to configure and mechanical design from the automa-
the field devices accordingly. tion system details. To be effective, this
requires a method of maintaining overall
ENABLE: The field devices are assumed to be configured in the system and asso- project management and information for
ciated with a particular control strategy. ExxonMobil’s project execution process automation software and hardware layers.
assumes that the company will complete most of the engineering, configuration One reason why traditional automa-
and testing in a virtual environment, but that the company will likely not know tion projects make such decoupling dif-
exactly to which I/O channel each field device is configured. ficult is the highly customized nature of
In this step, the system will know to which I/O channel the new device is con- the hardware, particularly I/O and field
nected, and a logical association between the control strategy and the field device wiring. These designs cannot be finalized
can be made. Once this happens, the field device and its associated logic are en- and built until the process and mechani-
abled for use. cal portions of the plant are completed.
A typical example is as follows: A ves-
DOCUMENT: Assuming that all of the above steps are completed successfully, sel in the process needs a level sensor to
ExxonMobil’s expectation is that the system will report this success in an event ensure that the amount of liquid is beyond
log. The company aims to greatly streamline field commissioning activities that a given point. For the sake of simplicity
today require paper loop folders and many field trips. and economy, a level switch is specified
ExxonMobil also believes that the system can automate some of the testing with a digital on/off output and an appro-
that is performed by an engineer or operator sitting at the console in radio contact priate I/O channel created in the control
with a field team. For example, if the detected device is a control valve, an analog system to receive the signal. However,
output can be sent to the valve and its position read back via HART. It can be veri- the process designer later decides that it
fied that the valve is working correctly, that it is not sticking, that its failure mode is critical to know the actual level, and re-
(fail closed or fail open) is correct, and that it positions correctly over its range. quests a modification.
It would be desirable to contain all of the circuitry needed to implement A level transmitter must now be de-
DICED in the configurable I/O module. If the software can be implemented to ployed in place of a level switch alone, so it
take full advantage of this hardware, then this desire may be realized. Note that is necessary to change from a digital signal
DICED requires no changes in the field devices themselves. to a 4-20 mA signal. Such a change might
not seem substantial, but, in the real world,
40JULY 2015 | HydrocarbonProcessing.com
 Refinery of the Future

it can involve an entire series of steps, from protocols for communication with smart capability have asked, “Why can’t the
hardware implementation to documenta- field devices, typically instruments and control system do the entire smart field
tion updates. Multiply this process by a few analyzers. With natively supported com- device configuration?”
(or even dozens of) such changes, and con- munication in place, the diagnostic infor- This is a simple question with huge im-
struction begins to fall behind schedule. mation from these smart field devices can plications. While users appreciate how the
Fortunately, there is a solution to this be gathered and used in a sophisticated capabilities of present-generation smart
problem, and it lies with more flexible asset-management program. devices have advanced, the downside is
I/O systems. One of the interesting aspects of this the complexity of configuration. While a
capability is its bidirectionality. Not only pressure sensor 20 years ago might have
Configurable I/O cabinets. Several au- do the smart field devices send informa- contained a dozen or so parameters in
tomation OEMs have developed smart, tion to the control system, but the con- need of setting, today’s units can have
configurable I/O technology capable of trol system can also send information to hundreds of parameters, so the configura-
supporting multiple signal types on a per- the devices. Customers looking at this tion process can be quite tedious.
channel basis, and this development is
arguably the most critical for the parallel Conventional project execution: impact of design changes
execution of process/mechanical and au- Project start
tomation system design (FIG. 3).
Project delivery
Wiring cabinets outfitted with con- and startup
figurable I/O can now be provided as
stock items by the manufacturer, tested
and made ready to ship from stock or
Design
with a short lead time. They are built to
withstand process plant environments, Application High application
allowing them to be mounted in the field dependency on
hardware and
to reduce wiring complexity. Marshalling Hardware field wiring
cabinets are eliminated, along with most Field installation
termination points. The number of wir-
ing terminations from each device to the Loop check
control system is reduced from 20 or even Late data changes can impact
all project pieces and require Project risk
more, to perhaps five. engineering rework mitigation
This kind of smart I/O increases the
independence of the automation system
FIG. 2. Late changes to a project cause delays in each phase. These delays cascade down the
from the process/mechanical design since schedule, pushing past the deadline.
it supports system-independent loop
commissioning. When the I/O cabinet is
in place and the field devices are installed,
the performance of the field device and its
interaction with the relevant final control
element can usually be verified, even be-
fore the control system is installed.
When changes come late in the proj-
ect, such as the shift from a point level
sensor to a level transmitter, as men-
tioned previously, it is a simple matter to
reconfigure the connection point in the
cabinet. This capability for changing con-
figurations, along with flexible binding of
the automation hardware layer to the soft-
ware layer, support a seamless transition
to the final phases of project completion,
without gaps in the schedule. This is be-
cause much of the hardware loop valida-
tion is accomplished during system-inde-
pendent loop commissioning.

Smart communication for smart

devices. A common element of the new
configurable I/O systems is their ability FIG. 3. Multiple control system hardware suppliers are already shipping or designing configurable
to use the latest digital communication I/O cabinets. These cabinets are a key element of new project management techniques.

Hydrocarbon Processing | JULY 201541

 Refinery of the Future
Agile project execution: detail
Project start
Modular
engineering
Design
Application
Hardware
Field installation
Smart, configurable System
I/O modules cabinet parts independent loop
order
FIG. 4. New capabilities allow for a high level of parallel activity, which compresses the
overall schedule.
All of the information necessary to
configure field devices is contained in
databases in the control system, so why
should these systems be unable to transfer
all of the parameters to the device? The
technical capabilities are indeed present,
and several automation OEMs are devel-
oping the process to make it happen. Exx-
onMobil has characterized this approach
with the acronym DICED, which stands
for Detect, Interrogate, Configure, Enable
and Document (see sidebar article).
Present thinking is that all of these steps
should happen automatically. When a tech-
nician installs a new field device by placing
a device with a specific tag number in a spe-
cific location, the process follows of its own
accord to accomplish the following:
• The control system detects when a
new device is in place and wired.
• The control system interrogates
the device by sending a command
requesting its tag. The tag number
is the only setting the device
requires before installation, and this
can be put in by the manufacturer
per the customer’s request.
• Once the device is identified, the
system looks in its database at
the configuration parameters and
downloads them to the device.
These parameters can include range,
engineering units, alarms, etc.
• Once the system verifies that the
configuration and the I/O channel
are established, the system then
enables the device.
• Since this process is automated,
the system can create its own
42JULY 2015 | HydrocarbonProcessing.com
Project delivery
and startup
Wiring
independent
Flexible binding after
system-independent
loop check
System
independent
Loop check
System Project risk
mitigation
commissioning
documentation, thereby updating
all related databases automatically
and drastically reducing the need
for human intervention.
Combining these technologies can
have profound positive effects.
Putting technical advances to work.
When smart I/O, system-independent
loop checking and automated device
configuration are used together, different
functions can overlap to shorten project
execution time and reduce required engi-
neering resources (FIG. 4).
With this project methodology, there
is significant risk reduction as a result of
parallel engineering, reduced automation
hardware-to-software dependence, flex-
ibility in binding, reusability of engineer-
ing modules and best practices. There is
an additional decrease in total project in-
stalled cost due to the reduction in wiring,
marshalling and field terminations.
It becomes possible to envision both
parts of the automation effort—hardware
and software—as independent pieces as-
sembled from reusable modules following
their own schedules. More equipment is
purchased “off the shelf,” already engi-
neered and tested to relevant standards,
and then shipped and assembled in mod-
ular fashion, with flexible binding applied
at the appropriate time.
This approach allows for design chang-
es and the containment of problems re-
lated to late data within a particular execu-
tion piece, reducing overall project impact.
In fact, it becomes possible to construct an
entire process unit or skid offsite, with its
associated devices, wiring, piping, equip-
ment, etc., and to mount configurable I/O
cabinets as part of the completed unit.
Device and I/O loops can be checked
and commissioned in staging, indepen-
dent of the plant’s automation system
design specifics. The construction and
hardware pieces can be factory accepted,
and the entire unit can then be shipped to
the site for assembly and connection with
the rest of the plant, or adjacent units, all
independent of the actual application en-
gineering or system platform at the site.
Creating mechanisms capable of sup-
porting parallel activity on this scale is
valuable for all of the reasons discussed,
but it does not entirely address the hu-
man resource requirements needed to ex-
ploit the advantages in the face of demo-
graphic changes. Process control system
OEMs and user companies are increas-
ingly using engineering resources that are
scattered around the world, and many of
the new developments make that easier;
there are growing libraries of modules
to avoid the need for writing code from
scratch for a single project.
Customers and suppliers alike are
looking for ways to use intellectual prop-
erty repeatedly, reducing time and cost.
Changing to new I/O platforms with
self-configuring field devices reduces the
time a technician must manually key in
parameter values.
Nonetheless, many aspects of a project
are still labor intensive, although where,
when and by whom specific functions are
performed are becoming more fluid. If a
greater number of tasks can be carried out
simultaneously earlier in the project, then
more people will be needed for a shorter
period of time. Users will need to utilize
combinations of resources—internal en-
gineering staff, construction companies,
automation system integrators and auto-
mation supplier(s)—in new and flexible
combinations, as needed, to realize the
biggest benefit.
New technologies and work practices
are making these engineering approaches
possible and more practical. They can
provide great benefits to EPC companies
and technology licensors, who can protect
their own technology and execute proj-
ects using methodologies to provide the
most value. Automation OEMs are creat-
ing these advances now. Some are already
available, but it is certain that many more
will be available in the near future.
 Special Report
J. ESTEBAN, Criterion Catalysts and Technologies;
and M. HARTMAN, Marathon Petroleum Co.
Turning a Tier 3 profit
In the highly competitive refining market, profitability is
not a benefit of successful business, but rather a necessity for
sustainable business. Profitable solutions and technologies
are inherent to a refiner’s success, providing the driving force
to transition from survival in tough markets to thriving sus-
tainable development. The hydrocarbon processing industry
(HPI) faces threats on many fronts that challenge profit mar-
gins and business development. Growth in challenging crude
oil and products markets requires the careful application of
best practices for asset utilization and strong technical solu-
tions to adapt to changing constraints.
Environmental regulations have made it increasingly chal-
lenging for refiners to adapt profitable solutions while main-
taining feedstock and product flexibility. Notably, the contin-
ued reduction in refined product sulfur (S) specifications has
revolutionized the industry’s landscape over the last decade,
increasing the importance of hydrotreating solutions within
refinery complexes. This will continue as the industry moves
toward the future Tier 3 regulations where the production
of less than 10 ppm of ultra-low-S gasoline (ULSG) will be
required in 2017. Several refiners have already implemented
technologies and strategies with profitable and flexible solu-
tions to meet Tier 3 blend stock requirements. This is a testa-
ment to the industry’s commitment to enriching the environ-
ment and communities to which it provides energy solutions.
Tier 3 strategies. Many of the blend components of typical
gasoline product streams are very low in S, so achieving Tier
3 specifications for most refiners requires focus on a limited
number of blend components in the gasoline pool. Generally,
these blend components are untreated light straight-run gaso-
line, straight-run naphtha, natural gasoline, purchased blend
stocks and fluid catalytic cracking unit (FCCU) gasoline.
Most of these components are small portions of the overall
pool, and they often fit into a simple model for S reduction
consisting of inclusion in existing treating facilities, additional
conventional treating or exclusion from the blend pool.
The primary target stream for S reduction is FCC gasoline,
usually the largest blend component and the highest S con-
tributor to the blend. In many applications, a target of 20–30
ppm of S in FCC gasoline is required to meet the less than
10 ppm specification in the blended gasoline product streams.
FCC gasoline is also a large contributor of octane barrels to
the gasoline pool, and retention of superior blend properties
is highly important when considering options for stream S re-
duction. The challenge is providing profitable solutions for a
Refinery of the Future
superior blend component low in S that does not result in the
hydrogenation of valuable olefins found in FCC gasoline.
Reduction of FCC gasoline S is achieved today using mul-
tiple approaches: the pretreatment of FCC feed streams, the
post-treatment of FCC gasoline or a combination of the two.
The post-treatment of FCC gasoline, unlike conventional hy-
drotreating, targets the selective removal of S from the feed
stream while limiting hydrogenation of the feed to minimize the
reduction of valuable olefins in the stream. These olefins con-
tribute to the higher octane of FCC gasoline and are inherently
essential to the overall value of the stream as a blend component.
Established processes for post-treatment have demonstrat-
ed successful production of Tier 2 blend components with-
out significant losses of octane. However, there remains some
degradation in product value for this method of S reduction.
Further S reductions using typical post-treatment methods
to achieve Tier 3 levels require increases in operating severity,
which can result in additional octane loss, creating a significant
economic penalty.
Alternatively, the pretreatment of FCC feed streams re-
moves heteroatoms, including S and nitrogen (N2 ), result-
ing in favorable reductions in product S contents for all FCC
products. In addition, pretreatment also removes metals and
aromatics from the feed streams, reducing FCC catalyst poison
effects and improving feed crackability, respectively. Achieving
additional reductions from existing pretreatment facilities re-
quires higher-severity operation, which can result in reduced
catalyst life cycles. Recent developments for both processes
have provided favorable results for the application of potential
drop in existing facilities.
Benefits of FCC pretreat strategy. Synergies between an
FCC pretreat unit and an FCCU may start with, but may not be
limited to, reduced S in products. Pretreatment of FCC feed pro-
vides significant upgrades in feed quality for an FCCU, resulting
in improved yields and beneficial distribution of heteroatoms in
the product streams. The hydrogenation of FCC feed streams is
necessary for deep desulfurization, especially when operating at
higher S conversion targets for Tier 3 FCC gasoline production.
This hydrogenation of feed results in the removal of metals and
N2 , which are poisons to FCC catalysts, as well as the satura-
tion of aromatics, improving the conversion potential of feed
streams. More highly hydrogenated feed streams achieve higher
conversion in an FCCU, given constant operating conditions.
It is important to note that conversion in any FCCU is a
choice, meaning that the desired product slate is flexible with-
Hydrocarbon Processing | JULY 201543
 Refinery of the Future
in heat balance constraints with the adjustment of operating
parameters. Since an FCCU must remain in heat balance, the
introduction of upgraded feed streams results in lower coke
production and higher catalyst-to-oil ratios. The unit responds
by increasing the circulation of catalyst from the regenerator
to the riser to generate similar coke make and remain in heat
balance. The increased catalyst:oil ratio provides a boost in
conversion of feed to saleable liquid products. Typically, day-
to-day changes in FCC conversion are made by controlled
adjustments in the riser top or reactor temperature. These
changes influence the operation of the regenerator slide valve
controlling the contact of hot catalyst with feed injected at the
bottom of the riser. However, feed preheating is also used to
influence conversion by pre-atomization of feed prior to enter-
ing the mixing zone of the riser. Feed preheat also impacts the
catalyst:oil ratio by playing a role in the amount of hot catalyst
required to achieve the target riser top temperature. A higher
degree of feed preheat results in a reduced need for hot catalyst
from the regenerator, thus a reduction in conversion by indi-
rect effect on the catalyst:oil ratio.
The recycling of products such as heavy cycle oil and slurry
oil increases coke deposition on catalyst, resulting in conversion
control, regenerator heat balancing and black oil minimization.
Beyond day-to-day operating parameter control, the very na-
ture of a circulating fluidized bed allows for the adjustment of
catalyst formulations and custom control on catalytic activity
throughout the operating cycle. It is this dynamic nature that
plays well into the synergies of FCC pretreat and operation,
yielding market trending control for profit maximization.
The addition of hydrogen (H2 ) to FCC feed results in an
increase in feed API gravity due to aromatic saturation and
removal of heteroatoms, leading to an increase in total liquid
volume yield. This increase in feed gravity is associated with a
shift in feed boiling range, since the boiling point of the satu-
rated aromatic structures is lower. FIG. 1 shows this effect.
Aromatic rings do not crack in the FCCU, but saturated
molecules do, creating improved feed crackability. The satu-
ration of rings in polynuclear aromatics increases the avail-
able molecules for conversion in the FCCU. The removal of
N2 from FCC feed streams reduces the inhibition of cracking
mechanisms critical to both FCC performance and the distri-
bution of the remaining heteroatoms in FCC product streams.
Targeting low FCC feed N2 levels results in a more favorable S
distribution in FCC product streams with lower FCC gasoline
BP 176°F BP 178°F
BP 424°F BP 403°F
BP 644°F BP 554°F
BP 644°F BP 554°F
FIG. 1. The increase in feed gravity is associated with a shift in feed
boiling range.
44JULY 2015 | HydrocarbonProcessing.com
S levels. This indicates that FCC pretreat hydrodenitrification
(HDN) and hydrodearomatization (HDA) performance, not
solely hydrodesulfurization (HDS), are critical influencing fac-
tors in the production of Tier 3-quality FCC gasoline.
When treating FCC feed streams, the saturation of polynu-
clear aromatic species can be used to influence the distribution
of aromatics in FCC product streams. The FCCU will remove
functional groups from aromatic rings while leaving the rings
intact. Because the boiling range of single-ring aromatics falls
in the same range as gasoline, reducing polynuclear aromatics
to single unsaturated aromatic species increases the production
of FCC gasoline, given the same operating conditions. Di- and
tri-aromatic species have boiling points that fall in the typical
light crude oil (LCO) range, resulting in conversion to LCO af-
ter functional groups and saturated species are removed. Thus,
the saturation of heavy polynuclear aromatic species provides
an increase in feed conversion to products in the FCCU, in-
cluding gasoline and LCO. Inherently, this relates to the profit-
ability achieved from feed treating, but the removal of aromat-
ics is also essential in deep desulfurization and denitrification
of feed streams. As higher conversion levels of S and N2 are
required in hydrotreating, the remaining molecules contain-
ing S and N2 become increasingly more difficult to treat due
to the molecular structure associated with aromatic species.
To remove these heteroatoms, hydrogenation of the molecular
structure is required to expose the occluded heteroatoms.
The influence of feed N2 in the FCCU is key to under-
standing the synergy between FCC pretreat operation and
FCC response. N2 inhibits the catalytic function in an FCCU
and reduces catalytic cracking reactions, including secondary
cracking mechanisms. In turn, this reduces the conversion of
feed to products in the FCCU, as well as the distribution of
heteroatoms in FCC product streams. Because Tier 3 regula-
tions are very stringent with respect to gasoline S, the focus of
heteroatom distribution is heavily weighted toward S in FCC
gasoline. When secondary cracking mechanisms are inhibited
by higher feed N2 values, there is an increase in S found in the
gasoline fraction. However, reducing feed N2 increases the
conversion of organic S molecules to H2S and liquid products.
This relationship between feed S and N2 implies that when feed
streams are treated to reduce N2 , the feed S can be increased
while sustaining Tier 3-quality FCC gasoline production.
CASE STUDIES
The following studies explore the strategies of two separate
refiners in employing latest-generation FCC pretreat catalyst
technology to maximize profitability. The three main areas of
profit generation when considering high-severity FCC feed
pretreatment are hydrotreater volume gain, FCC conversion
enhancement and, relevant to current trending markets, ultra-
low-S diesel (ULSD) maximization.
Marathon Petroleum Co. (MPC), Catlettsburg. MPC
operates the Catlettsburg refinery in Catlettsburg, Kentucky.
The strategy for Tier 3 fuels production at the refinery is high-
er-severity FCC feed pretreatment to reduce FCC gasoline
S for a combined gasoline pool blend below the required 10
ppm. The refinery recently replaced and upgraded the cata-
lyst in one of its two FCC pretreat units, and it operates two
 Refinery of the Future

FCC pretreat units, a low-pressure vac-

uum gasoil (LPVGO) and a high-pres-
sure vacuum gasoil (HPVGO), to hy-
drotreat 100% of the feed streams for the
100-Mbpd FCCU.
The two FCC pretreat units are op-
erated in concert to reduce feed S lev-
els. The LPVGO operates at low pres-
sure and is used to treat the “easy” feed
streams sourced from the crude units,
including atmospheric gasoils and light
vacuum gasoils. Processing roughly 40%
of the FCC feed, this unit operates at
lower conversion targets with a regener-
ated catalyst system. The HPVGO op-
erates at higher pressure and severity to
treat the more difficult feed streams, in-
cluding heavy vacuum gasoils and deas-
phalted oils. This unit processes roughly
60% of the FCC feed and is loaded with FIG. 2. MPC’s HPVGO operating strategy for its Catlettsburg refinery.
a new generation catalyst. With nearly a
year of the anticipated four-year cycle completed, the unit has
ppH2 determines
provided stellar performance with respect to both hydrotreater Constant ppH2 Plateau equilibrium
operation, as well as positive benefits for the FCCU. limitation
While MPC is not required to produce ULSG today, the
Total aromatics removal, %

team at Catlettsburg has been operating the HPVGO at higher
temperatures and S conversion to maximize unit profitability.
The team is keen to recognize the value inherent to aromatics
saturation of FCC feed streams and the conversion of excess H2
available to saleable liquid products.
The refinery generates a large volume of H2 from the pro-
duction of reformate gasoline and a dedicated H2 plant. This H2
is used by the various hydrotreaters in the refinery and is sub-
sequently converted back into liquid products by the hydroge-
nation of hydrotreater feed streams. The HPVGO feed stream
has excellent potential for upgrade by hydrogenation. The
operation at elevated temperatures increases the saturation of
aromatics because the HDA reaction is kinetically driven up to
an equilibrium constraint. Operation at elevated temperatures
also further reduces FCC feed S and N2 . Operating in this man-
ner requires the careful attention of refinery engineering and
operations staff to evaluate and maximize unit performance.
The graphics in FIG. 2 depict the constant weighted aver-
age bed temperature (WABT) of the HPVGO and associated
product S and N2 levels. The unit is operated to target equal
bed outlet temperatures at the lowest point required to achieve
the peak aromatic saturation, a function of temperature and H2
partial pressure. The highest operationally feasible H2 partial
pressure is maintained while also minimizing reactor bed out-
let temperatures within the peak window of aromatic satura-
tion to minimize deactivation of the catalyst system. FIG. 3 dis- ture in the FCCU reduces conversion of feed to gasoline and
plays aromatic saturation as a function of temperature and the
influence of H2 partial pressure.
The subsequent value provided the FCCU by operation of
the HPVGO in aromatics saturation mode are shown in the
performance plots in FIG. 4. The FCC feed rate has been in-
creased significantly following the change in catalyst system
in the HPVGO. Given constant feed properties and operating
conditions, increasing feed rate in an FCCU would typically
Equilibrium Crossover point
ASAT less
favorable
Dehydrogenation
more favorable
Decreasing LHSV
Coking more
favorable/rapid
Equilibrium
control
R + XH2 R
Increasing reactor temperature
FIG. 3. Aromatic saturation as a function of temperature and the
influence of H2 partial pressure.
result in reduced light olefin selectivity and gasoline olefinicity,
which relates directly to product octane due to a shift in riser
hydrocarbon partial pressure. Increasing feed can also result in
lower conversion due to residence time effects. However, the
upgraded feed quality from feed pretreatment has allowed the
increase in feed rate, along with a reduction in riser top temper-
ature with slightly elevated conversion and steady light olefins
yield. The FCC gasoline S is extremely low, highlighting the
benefits of HDN and HDA.
The FCC gasoline stream is not only very low in S, but also
retains superior blending qualities, including high octane even
at lower riser top temperatures. Reducing riser top tempera-
lighter products, but it can also reduce the quality of the FCC
gasoline. The retention of gasoline octane at lower riser top
temperatures is a function of the increased feed crackability.
The retention of overall olefin selectivity further illustrates the
high potential value from feed pretreatment associated with
premium products such as alkylate and propylene.
FCCUs produce a large amount of low-value light gases
that are typically directed to fuel gas (FIG. 5). These light gases
Hydrocarbon Processing | JULY 201545
 Refinery of the Future
(referred to as dry gases) are produced from over-cracking re-
actions, which are enhanced by thermal cracking mechanisms.
As regenerator temperatures increase, there is a higher ratio of
thermal:catalytic cracking at the base of the riser. The increased
feed H2 :hydrocarbon (HC) ratio for heavily hydrotreated feeds
influences the coke deposition rate on the catalyst, resulting in
lower regenerator operating temperatures at a given conversion
target. This, in turn, reduces the production of dry gases. This is
illustrated by the significant reduction in dry gas yield following
an upgrade in the catalyst system and the operation of the HPV-
GO in aromatics saturation mode. While the overall coke make
remains similar to retain heat balance in the FCCU and maintain
similar conversion, the rate of coke deposited per pound of circu-
lating catalyst is reduced, leading to an increase in catalyst circu-
lation rate and a reduction in regenerator temperatures (FIG. 6).
FIG. 4. The performance plots depict changes from previous typical values for key FCC performance indicators as a function of time in relation to
days on stream (DOS) for the HPVGO.
46JULY 2015 | HydrocarbonProcessing.com
Despite the potential advantages in gasoline production
from increased severity hydrotreating in the HPVGO, MPC
continues to operate the FCCU at similar conversion targets
primarily to capture margins in the distillate market. This flex-
ibility allows MPC to capture margins in a gasoline or diesel
economy while continuing to make high-quality gasoline
streams. The maximization of distillate from an FCCU can be
accomplished via several routes:
• Fractionation adjustments to reduce gasoline endpoint
and maximize LCO endpoint
• Lowering conversion by decreasing the reactor
temperature and catalyst activity, or increasing feed
preheat temperature
• Catalyst optimization with respect to zeolite:matrix
ratios
 Refinery of the Future

• Feedstock optimization, including the removal of
diesel range material from feedstocks (general refinery
distillate maximization), the optimization of feed pre-
treatment assets and the optimization of recycle streams.
For the Catlettsburg refinery, distillate maximization be-
gins with optimization of crude fractions and is further ex-
tended to bottoms conversion. The conversion of FCC feed is
adjusted to target balanced yields of both gasoline and LCO.
The LCO produced from an FCCU must be further processed
to meet ULSD specifications, but it remains a valuable prod-
uct. Extending this flexibility further, accomplishing equal
conversion at lower riser temperatures can allow for increased
product recycle capability. The recycling of products, espe-
cially heavy cycle oil, can be employed to increase LCO pro-
duction in an FCC and bottoms conversion, resulting in black
oil minimization. Note the observed slight reduction in slurry
and the retention of LCO yields following the change out in
the HPVGO catalyst system (FIG. 7).
A summary of the average benefits observed from operation
of the HPVGO at higher severity for maximum aromatics satu-
ration, as well as the production of Tier 3-quality FCC gaso-
line, is offered in TABLES 1 and 2.

FIG. 5. FCC light ends production. FIG. 6. FCC dry gas and coke Δ yield.

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Hydrocarbon Processing | JULY 201547
 Refinery of the Future

TABLE 1. Average benefits at higher severity

FCCPT, HPVGO Typical Tier 3 mode
Operating mode HDS Arosat
TLP volume gain, lv% of feed Base +1.25
Product S, ppmw 1,000 300
Product N2, ppmw 500 100
API gain, ° Base +1.2
Diesel make, lv% of feed Base +2.1

TABLE 2. Tier 3-quality gasoline production

FCC Typical Tier 3 mode
FIG. 7. Slurry and LCO Δ yields following a change out in the HPVGO
Combined feed S, ppmw 1,200 570 catalyst system.
Combined feed N2, ppmw 360 160
Combined feed API, ° Base +0.7 FCC product yields and minimize the production of slurry
Riser top, °F Base –20 oil. In some cases, the recycle of bottoms to extinction is ac-
complished with complete conversion of black oil to other
Conversion, % Base +0.5
saleable products.
Gasoline S, ppmw 46 10
Gasoline octane, R+M/2 Base Base Weathering the industry’s cyclical nature. The refining
Dry gas, wt% of feed Base –0.51 industry is rich with a tradition of technical solutions when
faced with challenging constraints and markets. To weather
TLP volume gain, lv% of feed Base +1.75
the cyclic and volatile nature of the business, it must employ
Gasoline, lv% of feed Base +2.34 robust and flexible solutions to meet future environmental
LCO, lv% of feed Base +0.18 regulations, capturing limited margins at the lowest possible
Slurry make, lv% of feed Base –0.35 capital investment. The application of latest-generation cata-
lytic advancements can provide both flexibility and low capi-
tal solutions for the production of Tier 3 fuels. Many refiners
US refiner. Another refiner operating a medium-high pres- have already transitioned to advanced catalytic solutions in the
sure FCC pretreat unit has employed an alternative strategy to FCC pretreat arena, which can be used as a Tier 3 fuels strat-
capitalize on the value of high-severity feed pretreatment. The egy for the advantages afforded in FCC operation and yield
unit has been operating at high severity for quite some time selectivity, capitalizing on both clean fuels and profitability.
with an alternative objective of the production of Tier 3-qual-
ity FCC gasoline. While the FCC downstream produces very- LITERATURE CITED
Gripka, P., O. Bhan, J. Esteban and W. Whitecotton, “Tier 3 capital avoidance with
low-S gasoline, the unit is primarily operated at high severity catalytic solutions,” AFPM Spring Annual Meeting, March 2014.
to produce a ULSD stream from the fractionation column Street, R. D., L. Allen, J. Swain and S. Torrisi, “Optimizing potential returns,”
workup section. Hydrocarbon Engineering, March 2002.
The unit was originally envisioned to solely treat gasoil Cerić, E., Crude Oil, Processes and Products, IBC & PetroInvest Sarajevo, 2012.
Magee, J. S. and M. M. Mitchell, Fluid Catalytic Cracking Science and Technology,
streams for processing in the downstream FCCU. However, Elsevier Science Publisher B.V., 1993.
the refinery has leveraged the unit’s excess capacity and per- Hunt, D., R. Hu, H. Ma, L. Langan and W. Cheng, “Strategies for increasing produc-
formance capability to increase overall distillate production tion of light cycle oil,” PTQ Catalysis, 2009.
refinery-wide. This has enabled a significant increase in overall Niccum, P. K., “Maximize diesel production in an FCC-centered refinery,”
Hydrocarbon Processing, Gulf Publishing Company, September 2012, December
ULSD production and an improvement in crude oil capacity. 2014.
The unit has been operating at higher severity with latest- Gillespie, B., A. Gabrielov, T. Weber and L. Kraus, “Advances in FCC pretreatment
generation catalysts to maximize overall refining yields. Not catalysis,” PTQ Catalysis, 2013, Vol. 18, No. 2.
only does the unit produce a large volume of ULSD, but it also
JAMES ESTEBAN is a senior technical service engineer for Criterion Catalysts and
provides severely hydrotreated feed for the FCCU, which is Technologies, specializing in technical service and solutions for hydroprocessing
significantly upgraded with very low N2 and S, as well as a sig- applications, as well as being the Criterion global subject matter expert for naphtha
nificant degree of aromatic saturation. As such, the gasoline hydroprocessing. In addition to other refinery processes, Mr. Esteban has extensive
produced from the unit is very low in S and suitable in blends experience in FCCPT, ULSD and ULSK applications. Prior to joining Criterion, he
served in various refinery roles, including operations, unit engineering, process
to meet Tier 3 specifications. engineering, project engineering and project management. Mr. Esteban holds
Similar to MPC, this refiner capitalizes on the advantages a BS degree in chemical and petroleum refining engineering from the Colorado
afforded from the significant feed upgrade for the FCCU. School of Mines.
The unit is operated at very low riser top temperatures in the MICHAEL HARTMAN is a technical service engineer with Marathon Petroleum,
930°F–945°F range, achieving high levels of conversion. The beginning his career there in July 2012. He holds a BS degree in chemical
US refiner also recycles heavy cycle oil to maximize desired engineering from Ohio State University.

48JULY 2015 | HydrocarbonProcessing.com
 Special Report Refinery of the Future
D. LINDSAY, M. GRIFFITHS, A. SABITOV, D. SIOUI
and B. GLOVER, UOP LLC, a Honeywell Company,
Des Plaines, Illinois

How to cost-effectively adapt to a tight oil world

The increase in domestic production of light tight oil oDiesel cut: Higher cetane number with poorer
(LTO) has resulted in rapid shifts to processing these crudes cold-flow properties
in North American (NA) refineries. In spite of the logistical o Naphtha cut: Leaner reformer feed, lower C5+ and
challenges involved with bringing these new crudes to the hydrogen yields, less benzene saturation required
market, the impact by LTO on the NA refining industry has • Higher light and heavy naphtha yields
been dramatic. Waterborne imports declined from more than o Larger increase in light naphtha; greater need
60% in 2010 to less than 50% in 2014. The shift has been even for isomerization
more dramatic for light sweet crudes, with US Gulf Coast o Increase in feedrate to reforming unit (fixed bed
waterborne import of these crudes dropping from nearly 1 or CCR)
MMbpd in 2010 to virtually none in 2014. o Higher quantity of isomerate and reformate in
LTOs typically have a much higher content of light mate- gasoline pool
rial compared to the traditional light sweet crudes that most • Higher LPG yields.
NA refineries have processed. While these domestic crudes
offer lower-cost raw materials, there are inherent limits to the CASE STUDIES
amount of LTOs that can be processed by installed assets. A number of case studies have been developed to look at
These limits can result from the additional light content or options across the refinery to capitalize on increased LTO
from feed quality parameters, such as the high paraffin content processing while also maintaining overall refinery flexibility.
that is characteristic of most LTOs. Addressing these limita- These cases will:
tions will enable capturing the higher value from LTOs. 1. Evaluate the impact of the increased LTO component
in the crude mix to the refinery
MARKET OVERVIEW 2. Show how a refiner might take advantage of processing
As crude prices have dropped, there has been a slowdown opportunities that result from an increase in the
in the level of new LTO drilling activity, which may result amount of LTO in the crude mix.
in another rebalancing of crude slate for NA refiners. While
strategies are needed to most effectively handle the large in- Base Case. The crude rate to the Base Case NA refinery is 150
crease in LTOs, it is more critical that NA refiners remain Mbpd. In this case, the crude contains approximately 7 vol% of
flexible and control investment to navigate these uncertain
times. A number of typical scenarios that refiners may face LPG
LPG
are presented, along with cost-effective solutions that allow Benzene C3= excess
saturation Propylene
for increased LTO processing while still maintaining operat- Naphtha unit
ing flexibility. NHT Alkylation

Refining impact from LTO. While there is significant vari- Crude Reformer Reformate
150 Mpd splitter Gasoline
ability in individual LTOs, they generally share characteristics Gasoline
hydrotreater
that distinguish them from most other light sweet crudes: Kero
• Lower sulfur (S), nitrogen (N) contaminants AGO
o Lower hydrogen demand for hydrotreating and Diesel
LKGO C3=, C4= hydrotreater Diesel
hydrocracking units Cat-feed
• Lower vacuum residue (VR) yield hydrotreater
o Lower vacuum gasoil (VGO), coker and fluid CCN
HKGO FCC
catalytic cracking (FCC) rates Vacuum HT VGO LCO
o Lower FCC rates, lower C3=/C4= to alkylation unit, Coke Slurry
Coker
less alkylate
o Less FCC naphtha, alkylate in gasoline pool FIG. 1. Refinery model configuration. Note: Base Cases with and
• Higher paraffin concentration without CFHT were considered.

Hydrocarbon Processing | JULY 201549

 Refinery of the Future

LTO. The price set is indicative of more current market condi-
tions in the US, where WTI crude has been trading at an aver-
age price of < $60/bbl since December 2014. Ultra-low-sulfur
diesel (ULSD) is priced at a premium over regular gasoline.
Propylene is priced such that alkylation of propylene to a pre-
mium gasoline-blend component is favored over the direct sale
of propylene. The heavy-oil upgrading section of the refinery
contains a vacuum distillation unit (VDU), coker and FCC unit
(FCCU). GO from the VDU and the coker is fed to the FCCU.
Scenarios with and without an FCC feed hydrotreater (CFHT)
were analyzed. The alkylation unit is at full capacity to meet
the premium gasoline production target. For the case without
a CFHT, the net margin was established to be $103 MM/yr.
Basis. The price basis used in this study is provided in
TABLE 1. The transportation fuel specifications are based on
typical US requirements including ULSD with a target cetane
of 45 and gasoline (R + M) / 2 = 83.7 (before ethanol addi-
tion) for regular and 91.4 for premium at a 9 psig Rvp. The
WTI crude price was used as the benchmark with crude pur-
chases and products being compared on a relative basis. TABLE 2
shows the crude properties used in the study.
Case 1: Increased quantity of LTO in crude. In this case,
the amount of LTO in the crude has been increased from 7
vol% (Base Case) to 30 vol%. The amount of LPG, naphtha
and diesel from the refinery increases, but the production of
GO and residue decreases significantly. The increased amount
of LTO being processed in the refinery results in improved
FCC feed quality, but it also reduces the amount of GO feed
available to run to the FCCU. The FCC feed is more paraffinic
and contains more hydrogen. This higher-quality feed enables
higher conversion, improved gasoline selectivity and increased
light olefin (C3= and C4=) yields. The FCC also produces less
light cycle oil (LCO) and slurry. Both, the crude composition
change and the FCC yield shift resulted in an additional net
margin of $25 MM/yr above the Base Case.
Case 2: Divert VR from coker to FCCU. This scenario
builds on Case 1, and takes advantage of the reduced flow of
improved quality feed to the FCCU. VR is diverted from the
coker to the FCCU. The introduction of low-quality VR to the
FCCU results in lower conversion and volume expansion com-
pared to Case 1. However, even though this case results in low-
er conversion in the FCCU, upgrading the VR still proves to be
valuable. The net margin increases by $18 MM/yr above Case
1. The amount of VR that could be diverted to an FCCU de-
pends on the ultimate coke-burning capacity limit of the regen-
erator and the catalyst hydrothermal deactivation temperature
limitations. The feedrate to the alkylation unit is maintained by
feeding all of the FCC propylene to the unit, and this will result
in zero propylene sales. Additional slurry from the FCCU is
recycled to the coker, but, as the amount of VR to the coker has
decreased, the total concarbon content of the feed to the coker
is also lower. The refinery coke production decreases.

TABLE 1. Study pricing basis Case 3: Produce high-quality diesel by oligomerization

Relative pricing of light olefins from the FCCU. This case is the same as
Case 1, except that an oligomerization and indirect alkylation
Crude feed Base
processes are used to increase diesel production.1 This process-
Major products, % of crude ing route can increase refinery margins by oligomerizing low-
ULSD 111% value light olefin streams to high-quality, high-value blending
Regular gasoline (83.7 RM/2) 104% components for the gasoline pool.1 C4 and C5 olefins from the
FCCU are oligomerized to produce a high-quality, low-S distil-
Premium gasoline (91.4 RM/2) 113%
late range material. The improved quality FCC feed results in
Naphtha 91% more light (C3–C5 ) olefins that can be converted to alkylate in
Propylene 84% the alkylation unit and/or to diesel in the oligerization unit.1
Combined LPG 46% The feedrate to the alkylation unit was maintained by preferen-
tially feeding C3= and then C4= to the unit. C5= and leftover C4=
Slurry 80%
are routed to the oligomerization unit, which primarily pro-
Bunker fuel oil 78% duces diesel. As summarized in TABLE 3, this scenario results
in an additional net margin of $7 MM/yr above Case 1. As in
TABLE 2. Crude properties Case 2, this scenario results in zero propylene sales.
Base Case Possible future Case 4: Increasing refinery margin via changes in
crude slate crude slate
CFHT. Corresponding cases were developed for a refinery flow
Description 7% tight oil in crude 30% tight oil in crude scheme that includes a CFHT unit. In this Base Case (CFHT
API 29.6 33.2 Base), the CFHT provides more than 90% desulfurization and
Sulfur, wt% 1.6 1.3 40% conversion of N content, which enables the FCCU to in-
crease conversion and refinery margins. With the benefit of the
TAN, mgKOH/g 0.45 0.35
CFHT, the modified Base Case will have a $37-MM higher
650°F-minus, vol% 50.1 54.8 margin compared to the case without a CFHT. Since the re-
1,000°F-plus, vol% 21.7 17.8 finery with a CFHT begins with a higher-gross-margin start-
Ramsbottom carbon, wt% 5.6 4.4 ing point, the crude change alone does not lead to the benefits
described earlier. However, an upgrade in CFHT operation to
Vanadium, ppm 85.4 65.9
a mild hydrocracking unit (MHCU) will provide substantial
Nickel, ppm 22.7 17.6 margin improvement.
50JULY 2015 | HydrocarbonProcessing.com
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Select 90 at www.HydrocarbonProcessing.com/RS
 Refinery of the Future

With the increase of the LTO component into the crude
mix, the performance of the CFHT unit can be pushed to
provide even larger margin benefits. With the crude change,
the feedrate to the CFHT is decreased by 3 Mbpsd. The feed
quality also improves significantly with a 1.5 API increase and
approximately 10% less S and N. These changes enable the
CFHT to provide a significant improvement in FCC feed,
while maintaining the same cycle length. FCC feed S and N
contents are both reduced by more than 30% compared to the
CFHT Base Case. The improved feed will increase refinery
margins by $18 MM/yr. This margin improvement is signifi-
cant, but an even larger boost can be obtained by converting
the CFHT into an MHCU.
The reduction in feedrate to the CFHT, as well as the reduc-
tion of the feed N coupled with the addition of a second reac-
tor in series, enables the revamped unit to convert about 30%
of the FCC feed into diesel and lighter products. The existing
reactor is loaded with high-activity Ni-Mo HC-pretreat catalyst
and the new reactor is loaded with HC catalyst. The conversion
to MHCU will require capital investment for revamp of the
CFHT. However, that investment is expected to pay off within
one to two years with a $53 MM/yr improvement in refinery
margins. The total economic impact for the crude change and
the conversion of the CFHT to MHC operation is $71 MM/yr.
TABLE 4 summarizes the CFHT options discussed earlier. To
achieve that boost in margin, the FCCU feed is adjusted to
contain approximately 25% VR. As in Case 2, directing VR to
the FCCU will reduce coke make and slurry oil yields with a
corresponding increase in gasoline and diesel yields.
For the MHC case, propylene production is eliminated.
Propylene can be produced by introducing ZSM-5 into the
FCC catalyst mix. The propylene would be produced at the
expense of regular gasoline.
The benefit of converting a CFHT into an MHCU has been
demonstrated in implemented projects. For example, similar
results were achieved by a refinery for conversion of a CFHT
to an MHCU. In that case, an existing 1,500 psig, 30 Mbpd
CFH feeding a mixture of 24% CGO, 18% LVGO and 58%
HVGO, operating at 17% conversion was converted into an
MHCU by replacing part of the existing hydrotreating catalyst
with advanced hydrotreating catalyst and the remainder with
hydrocracking catalyst. In addition, a catalyst cooler was added
to the FCCU to permit the processing of the higher-concarbon
VR feedstock. As a result of the modifications, the unit conver-

TABLE 3. Summary of Cases 1–3

Base w/additional LTO, Divert VR to FCC, Implement oligomerization
Case description Base Case 1 Case 2 technology, Case 3
FCC feed type GO GO GO + VR GO
Product rates % of Base % of Base % of Base
Coke Base 82 77 82
LPG Base 107 104 107
Propylene Base 89 0 0
Gasoline—Regular Base 102 103 101
Gasoline—Premium Base 100 100 100
ULSD Base 100 103 103
Fuel oil Base 86 86 86
Asset utilization rates
CDU, bpsd 150,000 150,000 150,000 150,000
% of Base % of Base % of Base
VDU Base 90 90 90
Coker Base 82 82 82
FCC Base 94 100 94
Portion of feed that is VR, % 0 0 6 0
Oligomerization unit No No No Yes
Alkylation Base 100 100 100
LT naphtha hydrotreater Base 118 118 118
HN naphtha hydrotreater Base 107 107 107
Reforming unit Base 107 107 107
Benzene unit Base 107 107 107
FCC naphtha hydrotreater Base 96 96 96
Distillate hydrotreater Base 100 103 102
FCC feed hydrotreater 0 0 0 0
Relative refinery margin, $MM/yr Base Base + 25 Base + 43 Base + 32

52JULY 2015 | HydrocarbonProcessing.com
 Refinery of the Future

sion was increased from 17% to 40%, and the overall refinery TABLE 4. Case 4—FCC feed pretreating unit case summary
distillate production was increased by 7%. Given a diesel-to-
gasoline price differential of $5.25/bbl, this conversion proj- CFHT CFHT Base w/ Conversion
ect had a payback of less than two years and an internal rate of Case description Base additional LTO to MHC
return (IRR) of 54%. The shift to LTO is expected to provide CFHT feedrate, bpsd 45,114 42,360 42,360
more opportunities for these conversions. CFHT product properties
(680°F-plus)
Case 5: Increasing light naphtha isomerization with S, wppm 1,300 900 65
low-cost revamp. While many NA refiners have isomeriza-
N, wppm 1,343 871 133
tion units, these were typically installed before the current
ethanol mandates. At present, many of these units have been CFHT/MHC yield, vol% FF
idled or are being used primarily for benzene saturation in Naphtha 3 3.4 7
combination with seasonal campaigns of paraffin isomeriza- Diesel 10.5 11.5 23
tion. With an increasing diet of LTO crudes, the composition
of gasoline will shift away from FCC gasoline and alkylate and FCC feed 88.3 86.7 72.7
more toward reformate and isomerate. For refineries that do VR, vol% of FCC feed 0 0 9.6
not operate an isomerization unit, or where isomerization Refinery product rates,
capacity is limited, this can cause a bottleneck when LTO % of Base
content of the crude is increased. There are a number of cost- Propylene Base 62 0
effective approaches; they include:
LPG Base 104 96
• Revamp an existing isomerization unit
• Convert a recycle gas pentane isomerization unit to a Gasoline Base 101 101
light naphtha isomerization unit2, 3 Diesel Base 101 108
• Convert a zeolitic isomerization unit to a light naphtha Slurry oil Base 87 25
isomerization unit3
• Convert an idle naphtha hydrotreater or a fixed-bed Coke Base 82 76
reformer to an isomerization operation Refinery margin, $MM/yr Base Base + 18 Base + 71

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Hydrocarbon Processing | JULY 201553
 Refinery of the Future
• Add a light naphtha isomerization reactor (side-car)
to an existing reforming unit.3
A typical case would include a light naphtha isomerization
unit that was originally commissioned in the late 1970s or
1980s.3 Most likely, the unit was originally designed to process
pentanes and hexanes on a once-through hydrocarbon basis to
achieve a product RON of 80 to 82. While present-generation
isomerization units are designed with a once-through hydro-
gen configuration, older units were designed with a hydrogen-
rich recycle gas system. With increasing use of ethanol in gaso-
line blending, the RON requirement for many isomerization
units of this design has steadily declined. The addition of a
coker and an earlier shift to heavier, imported crudes would
further reduce isomerization RON demand by decreasing
the overall volume contribution of isomerate to the gasoline
pool. The operation of many of these isomerization units has
been shifted to processing C6 straight-run naphtha in a purely
benzene saturation role. In this operating mode, the dryer and
chloride management equipment in the unit are no longer re-
quired. Often, these systems have been decommissioned and
are no longer maintained.
With the realignment of the crude to significant quantities of
LTO, there are cases where the isomerization unit can no lon-
ger be idle, as the octane of the light naphtha is now too low
to be blended directly with the cracked gasoline and reformate.
While additional RON can be achieved in the naphtha reform-
ing unit, the liquid volume loss and increased LPG production
that would result makes that option less attractive. The ability
of light paraffin isomerization to increase RON on a significant
fraction of the gasoline with very low volume loss makes this the
most attractive solution to the gasoline RON shortfall.
In situations like this, an existing pentane isomerization unit
can be brought back into isomerization service quickly and at
low cost by converting it to a light naphtha isomerization unit.2, 3
The catalyst is a non-chloride-based catalyst. It does not require
any of the chloride addition or caustic treatment characteris-
tics of chlorided-alumina pentane isomerization systems.2 It is
considerably more contaminant resistant, so it also does not re-
quire the liquid feed and hydrogen feed dryers that are a fixture
in chlorided alumina systems.2 For existing chlorided-alumina
isomerization units, which include a recycle gas compressor,
conversion to light naphtha isomerization operation can be
CO3, H2S, C2–
NGL
C3
feed Caustic
Deethanizer sweetening regeneration
unit
Depropanizer C3
sweetening Deisobutanizer
unit
Debutanizer
C5+
sweetening
unit
FIG. 2. Example flow scheme of an NGL fractionation facility featuring
a treating unit with common caustic regeneration.
54JULY 2015 | HydrocarbonProcessing.com
done easily, at low cost, with no need to re-commission feed
dryers and caustic-scrubbing or chloride-injection equipment.3
Tight-oil liquids: Impact on LPG handling. As noted in TABLE
3, increasing the tight-oil crude component in the feed increases
the amount of light material that must be processed through the
refinery system. Depending on how the crude diet changes, the
increase in light materials can be significant. It can be double or
more the content level as compared to the crude streams it is dis-
placing from the refinery. This may be one of the key limits to
leveraging the typically discounted pricing of domestic tight oil.
Many refiners have found that their ability to blend LTO
into their feedstocks has been restricted by the higher content
of light materials, including LPG in the crude. Debottleneck-
ing the top of the crude column through a revamp or by first
processing the crude in a preflash column has proven an effec-
tive component of programs aimed at increasing the amount of
LTO processed. Once separated in either the preflash or in the
crude column itself, this higher amount of LPG must be treat-
ed for S before being offered for sale or sent to downstream
processing units.
This increased demand for LPG treating in refineries has
coincided with the increase in field NGL available from the
production of wet natural gas fields. Producers have focused
on wet plays to increase production returns in the face of low-
er natural gas prices. This strategy has been effective and has
resulted in large increases in field NGL requiring separation
and treating. The first step of separating the bulk liquids from
natural gas results in a mixed stream known as y-grade liquids.
Once recovered, the next step in maximizing the value of y-
grade NGL is to fractionate them into the purity components
of ethane, propane, butane and natural gasoline (C5+). FIG. 2 is
an example of an NGL fractionation plant flow scheme.
Depending on markets available to the processor, it may
also be economically advantageous to split the butane stream
further into isobutane and n-butane with a de-isobutanizer
column. Isobutane is a valued feedstock for refineries with an
alkylation process unit. If additional isobutane is needed by the
local market, the n-butane can be converted to isobutane with
isomerization process technology.4
Whether collected directly from the field or from the pro-
cessing of crude oil at a refinery, untreated LPG may contain
S. The S is typically present as mercaptan, but this stream may
also contain carbonyl sulfide (COS) and hydrogen sulfide
Propane (H2S). When present, this S may need to be removed to meet
downstream pipeline specifications. In addition, S is a deac-
tivating poison to many catalytic systems, and it must be re-
moved to protect downstream catalyst systems.
i-butane
The most effective means of meeting this sulfur extraction
need is to process the materials with an LPG caustic “sweet-
ening” treating process.5 The S-containing feed is treated in
a combination column containing a prewash to first remove
n-butane COS and H2S, and an extraction section to remove mercaptan
S. The extracted mercaptan is removed from the caustic in the
C5+ caustic regeneration section. The fully regenerated caustic is
then sent back to the extraction section.
Projects related to NGL processing have been moving ahead
at a rapid pace, and the ability to process feedstocks quickly is
critical. To meet the schedule and construction needs of these

projects, modular construction techniques have been favored.
Modular packaging of the LPG treating units shortens the proj-
ect schedule while minimizing onsite construction require-
ments and time to operation.5
With the modular sweetening units, it is fabricated into a
number of individual modules in a fabrication shop including
piping, valves, vessels and pumps, as well as the instrumen-
tation and electrical for the process unit.6 The modules are
shipped complete and ready for installation at the processing
site, enabling a compressed project schedule.
To improve the packaging for modular supply, as well as
improve the extraction capability, the regeneration section of
caustic treating units has been redesigned. The redesigned sys-
tem results in a reduced plot plan and lower emissions, both
valuable aspects especially for revamps, as well as improved
caustic regeneration.7
Options. With the shift to increased consumption of tight-oil
crudes, refiners need processing strategies that allow them to
effectively deal with the resulting change in crude properties.
LTOs typically have a much higher content of light material
compared to the traditional light sweet crudes. To maximize
the benefit of processing these lower-cost crudes, the inherent
limits of the installed assets must be considered. In most cases,
modifications will be required. A number of options are avail-
able and can bring significant value while minimizing invest-
ment and still maintaining processing flexibility.
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Refinery of the Future
ACKNOWLEDGMENTS
The authors acknowledge the following individuals, for their assistance in gen-
erating data and for providing support for this article:
1. Tony Navarro, UOP refinery modeler, for providing refinery modeling and
evaluation support
2. Joe Ritchie, UOP refinery configuration leader, for providing configuration
and optimization support
3. Jeff Bray, UOP refinery configuration leader, for providing configuration and
optimization support.
NOTES
1
UOP’s Catolene-D technology has been employed to increase diesel production.
Catolene-D technology leverages UOP’s extensive experience with catalytic con-
densation and indirect alkylation (InAlk) process technologies.
2
UOP Penex process.
3
Par-Isom isomerization operation.
4
Isobutane with isomerization process technology, such as a UOP Butamer
Process unit.
5
The UOP Merox units is a treating “sweetening” process with common caustic
regeneration.
6
Most effective means of meeting this sulfur extraction need is to process the mate-
rials with an LPG Extraction Merox process unit.
7
The regeneration section of caustic treating units has been redesigned is known as
MVP caustic regeneration.
BIBLIOGRAPHY
Huovie, C., M. J. Wier, R. Rossi and D. Sioui, “Solutions for FCC Refiners in the
Shale Oil Era,” AFPM Annual Meeting, March 2013.
Lippmann, M. and L. Wolschlag, “Innovative Technology to Improve FCC
Flexibility,” AFPM Annual Meeting, March 2012.
Thomas, D., G. Kirker and D. Pappal, “Gas-to-Liquids via Mild Hydrocracking,”
AFPM Annual Meeting, March 2013.
Wier, M. J., D. Sioui, S. Metro, A. Sabitov and M. Lapinski, “Optimizing Naphtha
Complexes in the Tight Oil Boom,” AFPM Annual Meeting, March 2014.
Hydrocarbon Processing | JULY 201555
 | Bonus Report
LNG
The LNG sector is undergoing change as projects are consolidated
in regions with an abundance of proposed, expensive LNG export
projects, and as gas prices fluctuate alongside other energy
benchmarks. Deloitte’s Andrew Slaughter discusses how the drop
in oil prices will impact the construction of LNG export terminals
and future LNG pricing, as well as the potential establishment of an
Asian LNG hub. Despite changing market conditions, new sources of
supply into the global LNG market are actively under development,
both in terms of exporter startups and new methods of supply
delivery. Slaughter explains the major factors that could influence
global LNG trade patterns and the development of FLNG vessels.

Photo courtesy of Center for Liquefied Natural Gas (CLNG).

 Bonus Report
US liquefaction projects to drive
global expansion of LNG trade
As executive director for the Deloitte Center
for Energy Solutions, Deloitte Services LP,
ANDREW SLAUGHTER works closely with
Deloitte’s Energy and Resources leadership to
define, implement and manage the execution of
the Center’s strategy. He also helps develop and
drive energy research initiatives and manage
the development of the Center’s eminence and
thought leadership. During his 25-year career
as an oil and gas leader, he has occupied senior
roles in both major oil and gas companies and
consulting/advisory firms.
The LNG sector is undergoing
change as projects are consolidated in
regions with an abundance of proposed,
expensive LNG export projects, and as
gas prices fluctuate alongside other en-
ergy benchmarks. Hydrocarbon Process-
ing spoke to Andrew Slaughter, execu-
tive director for the Deloitte Center for
Energy Solutions, about the state of the
LNG industry and how trade patterns
and project slates could change in the
upcoming years.
LNG
A. SLAUGHTER, Executive Director for the Deloitte Center
for Energy Solutions, Deloitte Services, Houston, Texas
HP. Will the drop in oil prices
impact the construction of LNG
export terminals? If so, how?
Slaughter. Lower oil prices in 2015
are translating via contractual price link-
ages into lower delivered LNG prices
into the Asian market. This directly re-
duces margins available to existing LNG
sellers who supply large buyers in Japan,
South Korea and elsewhere in Asia.
However, future exports, from facilities
not yet onstream, will deliver into the
prevailing price environment at the time
when they become operational.
Deloitte’s view is that, over the next
several years, oil prices are likely to re-
cover from current levels, although
probably not at the $100-plus/bbl level
for quite some time. Each LNG project
developer will take a view on future oil
prices and the implications for the spe-
cific economics of their project, rather
than make hasty decisions based solely
on the price downturn of late 2014 and
early 2015.
In the US, a number of LNG export
facilities are well advanced down the
development path, having obtained the
necessary regulatory approvals from the
US Federal Energy Regulatory Commis-
sion and the US Department of Energy,
established commercial arrangements
for LNG sales and gas supply, and taken
final investment decision [FID]. These
projects are definitely moving ahead,
and Deloitte expects the first ramp-up of
US LNG exports to begin in early 2016,
after the planned startup of Cheniere’s
Sabine Pass facility in Louisiana.
Some of the other projects to have tak-
en FID are Freeport LNG and Cove Point
LNG. These facilities are under construc-
tion and will almost certainly go ahead,
with a total capacity of about 6.5 Bcfd to
7 Bcfd. Additional projects, such as Lake
Charles LNG, Corpus Christi LNG and
Elba LNG, are close to FID and have a
high probability of moving forward on or
near their proposed timeline.
The December announcement by
Petronas of a delay in taking FID at its
proposed LNG facility in British Colum-
bia [BC] was partially attributed to great-
er uncertainty in the oil price environ-
ment. However, there are other factors in
play, including greenfield development
costs in BC and the greater distance from
gas supplies.
Many developers are testing their
economics at a range of levels, examin-
ing strategies for efficient, cost-effective
project development and determining
that commercial arrangements are ro-
bust before taking FID. In some cases,
this may mean the delay or deferral of
projects, but there are enough projects
sufficiently well advanced to ensure that
the US is able to become a large LNG ex-
porter over the rest of this decade.
HP. How will LNG pricing be
impacted by today’s market
conditions? In the future, do you
see a large-scale switch to
gas-indexed pricing vs.
oil-indexed pricing for LNG?
Slaughter. For LNG supply under ex-
isting contracts, changes in the oil price
translate directly into LNG prices, albeit
with a three- to six-month lag; and spot
prices for LNG are influenced by current
levels of contracted LNG prices.
This year and into early next year,
LNG prices are moving significantly low-
er than they have been for the past several
years. LNG delivered to Tokyo has come
Hydrocarbon Processing | JULY 201557
 LNG
down from the $15/MMBtu to $16/
MMBtu range to below $10/MMBtu.
Long-term LNG supply contracts into
Asia have largely remained linked to oil in
some way throughout the history of LNG
trade. Depending on the supply-demand
balance at the time of contract negotia-
tion, the nature of the linkage can vary,
giving a degree of price responsiveness
to market conditions. When oil prices
are low, there is less incentive to look for
alternative price methodologies, such as
gas-indexed pricing.
The introduction of US LNG supply,
with feed gas purchased at Henry Hub-
related prices, will introduce an element
of gas-indexed pricing into the market,
but it is unlikely that this can be applied
to gas from other sources in the near to
medium term.
HP. What conditions would need
to be in place for an Asian LNG
hub to be successful?
Slaughter. To establish a commod-
ity trading hub around which to develop
financial trading, you need a location
Select 158 at www.HydrocarbonProcessing.com/RS
58
where physical delivery of the traded
commodity is possible, and a spot market
with the potential to trade sufficient vol-
umes to underpin demand for participa-
tion in a financial market.
Both of these elements are at a relative-
ly early stage in Asia. Singapore has devel-
oped LNG facilities to import LNG for its
domestic gas needs and has ambitions to
expand this to be the basis for a regional
hub. Spot trade in LNG in Asia has grown
in recent years, partly consequent on Ja-
pan’s need to secure additional gas on a
short-term basis as a power generation fuel
to replace nuclear generation. However,
most gas is still traded on long-term point-
to-point contracts, and LNG trade is struc-
turally much less fungible than oil trade.
The critical question is whether
enough liquidity can be established to
support physical and financial market
trading. Asian buyers and sellers have
largely been risk averse, mostly wanting to
lock in supply and pricing arrangements.
There may have to be a major shift in this
preference to allow the takeoff of a signifi-
cant new LNG trading hub.
HP. What do you see as the major
factors that will contribute to the
success or failure of floating LNG
(FLNG) ventures?
Slaughter. The main advantages of
FLNG are that this technology allows for
the development of gas in more remote
offshore locations. Also, the FLNG ves-
sel can be relocated at the end of the eco-
nomic life of the initial field.
In some cases, FLNG development
costs can be lower than those of onshore
liquefaction. Shell and Petronas are both
developing large-scale FLNG projects for
deployment offshore Australia and Malay-
sia, and there is a much smaller FLNG ves-
sel due to be deployed offshore Colombia.
These projects will come onstream in
the next two to three years, and achieve-
ments will be measured by their cost and
operational reliability. If success on these
initial projects is demonstrated, then
there are many other candidate fields
around the world where FLNG could be
a viable development option.
HP. Which countries will shape
global LNG trade flows over
the next five years?
Slaughter. The number of countries
becoming either sellers or buyers of LNG
has expanded significantly in recent years,
to approximately 20 exporting countries
and 30 importing countries.
New sources of supply into this global
market are actively under development,
including the US (although the US has al-
ready been a long-term exporter of LNG
on a small scale, with gas shipped from
the Kenai facility), Canada, Mozambique
and Tanzania.
On the importing side, several smaller
new markets are emerging, such as Egypt,
Pakistan and Poland. Deloitte expects the
most significant impact on global trade to
come from the establishment of the US as
a major source of new supply, along with
Qatar and Australia. In particular, this
gives Asia’s large buyers more supply op-
tions and some exposure to North Ameri-
can hub-based pricing.
The Panama Canal expansion opens
up a shorter trade route for US Gulf
Coast LNG to access Asian markets and
enhances its competitive position. With
respect to LNG imports, Deloitte will be
closely watching trends in China and In-
dia for indications of which mix of supply
sources they will favor.
 Regional report
China’s ‘energy revolution’ strives
for sustainable growth
Over the past decade, the People’s Republic of China has
experienced unprecedented growth. The country’s energy de-
mand, particularly for petroleum and other liquids, is rapidly
increasing as its industrial and transportation infrastructures
expand. While striving to secure energy resources, China is fac-
ing pressure to reduce air pollution levels caused by these expan-
sions. Traffic congestion and smog levels in China’s major cities
are among the most polluted in the world.
In March 2013, a new governmental leadership emerged
when Xi Jinping became president and Li Keqiang assumed the
premiership. The new administration is keen to initiate econom-
ic and financial reform in China in the interest of greater long-
term and sustainable growth.1 The National Development and
Reform Commission (NDRC), a department of China’s State
Council, is the primary policymaking, planning and regulatory
authority of the energy sector, among others.
In June 2014, China’s energy security strategies were revealed,
with the president introducing the key elements of China’s ‘en-
ergy revolution.’ The newest energy policies are driven by the
country’s growing demand for oil and its reliance on oil imports.
The National Energy Administration (NEA), launched in 2008,
along with the NDRC, are charged with policy implementation.2
China’s energy outlook. The US Energy Information Ad-
ministration (EIA) reports that China, the world’s most pop-
ulous country with an estimated 1.3 B people in 2013, is the
M. RHODES, Technical Editor
world’s second-largest consumer of oil and surpassed the US in
2013 as the world’s largest net importer of petroleum and other
liquids (FIG. 1).
China’s petroleum production has risen approximately 50%
over the past two decades, but it serves only the domestic mar-
ket. Long-term growth will require enhanced recovery at ma-
ture crude oil fields; greater investment to access more techni-
cally challenging plays, such as shale oil, tight oil and deepwater
fields; and growth in nonpetroleum liquids, such as gas-to-liq-
uids (GTL), coal-to-liquids (CTL) and biofuels.
Due to the growing disparity of consumption vs. production
(FIG. 2), the country imports approximately 50% of its crude oil
needs. China accounted for more than an estimated one third
of global oil demand growth in 2014, averaging net total oil im-
ports of 6.1 MMbpd.
The EIA’s International Energy Outlook 2014 forecasts that
China’s oil consumption will continue growing through 2016
to approximately 11.3 MMbpd, and will continue to rise by ap-
proximately 2.6%/yr through 2040, reaching 13.1 MMbpd in
2020, 16.9 MMbpd in 2030 and 20 MMbpd in 2040. This level
will exceed US consumption by 2034.1 In the past year, crude
imports have increased by around 8%.3
As China seeks greater energy security and moves away from
obsolete facilities (left), it is increasing its refining capacity with
construction and expansion projects like the Sinopec and BASF JV
complex in Nanjing (right).
Hydrocarbon Processing | JULY 201559
 Regional Report

Dominance of national oil companies. Because they con-
trol much of the oil and natural gas upstream and downstream
sectors, China’s national oil companies (NOCs) wield a great
amount of influence.
However, the government has been granting international
oil companies (IOCs) more access to technically challenging
onshore and deepwater offshore fields, mainly through produc-
tion-sharing contracts (PSCs) and joint ventures ( JVs). China
revised its oil price reform legislation in 2013 to further reflect
international oil prices in the country’s domestic demand.
NOCs from Kuwait, Saudi Arabia, Russia, Qatar and Ven-
ezuela have entered into JVs with Chinese companies to build
integrated refinery and petrochemical projects and to gain a
foothold in China’s downstream oil sector.1 IOCs—such as
Anadarko, BP, Chevron, ConocoPhillips, Eni, Husky, Kuwait
Petroleum, PDVSA, Rosneft, Saudi Aramco, Shell, Total and
Yuntianhua Group, among others—are offering technical ex-
pertise to China’s NOCs to gain access to Chinese markets.
The three largest state-owned oil and gas companies are Chi-
na Petroleum and Chemical Corp. (Sinopec); China National
Petroleum Corp. (CNPC), the parent company to PetroChina;
and China National Offshore Oil Corp. (CNOOC). Govern-
ment restructuring in the late 1990s reorganized state-owned
assets and expanded their operational responsibilities.
Sinopec, which operated 5.6 MMbpd of oil processing ca-
pacity in China in 2014, is the largest oil refiner in the world,
according to the US EIA, and it operates a significant refining
presence in the coastal and southern areas of China (FIG. 3).
Sinopec accounted for approximately 41% of the country’s re-
fining capacity in 2014 and relies heavily on imported crude oil
China
US
Japan
Net oil imports, MMbpd
for its refineries. Most of the NOC’s refineries are configured
to handle crude oil that is higher in sulfur (S) and acidity.1
In addition to its strong domestic presence, Sinopec is gradu-
ally investing in refining assets overseas. In 2015, it purchased
a 37.5% stake in Saudi Arabia’s 400-Mbpd Yanbu refinery and
began processing heavy crude oils. Sinopec recently entered into
JV partnerships for two large refineries, Mthomobo in South Af-
rica and Premium 1 in Brazil, and has also invested in oil storage
projects abroad.
CNPC/Petrochina is the country’s second-largest refiner. The
company is the leading upstream player in China and represents
an estimated 54% and 77% of China’s crude oil and natural gas
output, respectively.4 With a refining capacity of 3.44 MMbpd, it
accounted for approximately 30% of the country’s 2013 capacity.5
In 2014, CNPC/Petrochina expanded its downstream pres-
ence in southern China with the start of commercial operations
of its 200-Mbpd Pengzhou refinery in Sichuan province. The
company has also acquired refinery stakes in other countries
(e.g., Singapore and Japan) to secure more global trading and
arbitrage opportunities in the downstream sector. CNPC has
invested in refineries and pipelines in African countries in ex-
change for exploration and production rights.
CNOOC, which operates over 600 Mbpd of refining capac-
ity, entered the downstream sector through the commissioning
of the company’s first refinery, the 240-Mbpd Huizhou plant, in
2009. The third major NOC anticipates expanding this refinery
by 200 Mbpd in 2016. Primarily responsible for offshore oil and
gas exploration and production (E&P), CNOOC is becoming a
growing competitor to CNPC and Sinopec by not only increas-
ing its E&P expenditures in the South China Sea, but also by
extending its reach into the downstream sector, particularly in
6.1 southern Guangdong province.
5.1 While the ‘big three’ NOCs continue to plan and carry out
4.2 construction and expansions projects, shown in TABLE 1, smaller

India 2.7 NOCs and regional companies (FIG. 4) are struggling to compete.
South Korea 2.3
Germany 2.2 Crude purchases and teapot refineries. Demand contin-
France 1.6 ues to outpace production, and imports of crude oil have risen
Spain 1.2
Italy 1.1
Taiwan 1.0

FIG. 1. Top 10 annual net oil importers, 2014. Source: US EIA.

12
Forecast
Oil production and consumption, MMbpd

10

8 Consumption

6
Production
4
PetroChina
2 Sinopec
CNOOC
0
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

FIG. 2. China’s oil production vs. consumption, 1993–2016. Source: FIG. 3. Distribution of China’s major NOC refineries. Source:
US EIA. Hydrocarbon Processing Construction Boxscore Database.

60JULY 2015 | HydrocarbonProcessing.com
 Regional Report

dramatically in the last decade, driving the need for increased Strategic petroleum reserves and crude oil storage. Capi-
refining capacity. Investment research firm Sanford C. Bern- talizing on a decision by the Organization of the Petroleum Ex-
stein & Co. Inc. said that China’s increasing demand and record porting Countries (OPEC) to protect its market share rather than
purchases will create a global shortfall of 1.5 MMbpd in 4Q.6 cut production amid a global oversupply, China has increased
As the oil refining sector undergoes modernization, smaller purchases of crude to expand its strategic petroleum stockpiles,
independent refineries (commonly known as ‘teapots’), many buying a record 7.4 MMbpd in April 2015, up almost 17% from
of which are located in the eastern province of Shandong, are March and 3.1% from the previous high in December 2014.
being encouraged to increase capacity, streamline operations, Comparatively, the US imported approximately 7.3 MMb-
improve efficiencies and even consolidate with larger facilities. pd. To ensure adequate supply and provide a buffer against
These teapot refineries account for almost one third of China’s geopolitical issues, China has diversified its sources of crude oil
total refinery capacity. imports, although the largest source remains the Middle East.
Earlier this year, the NDRC announced a policy allowing
local refiners to almost double the amount of crude they can
import if they remove facilities with less than 40-Mbpd capac-
ity, modernize or remove antiquated facilities, and build oil
storage facilities.1
Many teapot refineries are likely to get quotas in 2015 for as
much as 30 metric MMt of foreign oil, equivalent to approxi-
mately 600 Mbpd, according to Beijing-based China Inter-
national Capital Corp. Consultancy ICIS China believes this
expansion will increase refining capacity by 15% to approxi-
mately 4.4 MMbpd.
The transition from fuel oil to crude, which can yield higher-
quality gasoline and diesel, is becoming increasingly prevalent
at the teapot refineries. SCI International reported that crude
oil accounted for almost 70% of the feedstock used by the plants FIG. 4. Smaller regional refineries, like this one in east China’s
last year, compared with 53% in 2011. Shandong Province, are struggling to compete against NOCs.

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Hydrocarbon Processing | JULY 201561
 Regional Report

Driven primarily by crude oil imports, total net oil imports now new terminals are expected until late 2016, and only a few ex-
exceed domestic supply, increasing import dependency from pansion projects are expected to add capacity in 2015. Some of
30% in 2000 to approximately 57% in 2014, the US EIA said. the new refineries are designed to accept all grades of crude oil,
As part of its 10th Five-Year Plan, China has established a which will help the country meet domestic demand and export
government-administered strategic petroleum reserve (SPR) petroleum products in the region.1
program, involving three phases and the construction of facili- Domestic refining capacity topped 14 MMbpd by 2015 with
ties by 2020 that can hold 500 MMbbl of crude. Between 141 the commissioning of PetroChina’s 200-Mbpd Sichuan facility,
MMbbl and 180 MMbbl of storage capacity has been built, and Sinochem’s 240-Mbpd plant and Sinopec’s 160-Mbpd Shiji-
several sites are under construction. azhuang refinery expansion.5 Capacity is expected to increase to
Completed in 2009, Phase 1 has a capacity of 103 MMbbl 17 MMbpd by 2025. Utilization rates declined to less than 75%
at four sites. Phase 2 is expected to provide an additional 170 in the past year as Chinese companies continued to build, de-
MMbbl by 2020, while 232 MMbbl of storage are proposed for spite slower oil demand growth in China and around the world.
Phase 3.1 The facilities are spread along the country’s eastern Industry analysts anticipate that China will add only 1.5
and southern coasts for improved accessibility.7 MMbpd of net capacity between 2015 and 2020 due to project
delays and overcapacity. Projects such as CNOOC’s Huizhou
The threat of overcapacity. China ranks behind only the US expansion, Sinopec’s Zhangjiang facility and CNPC’s Huabei,
and EU in refining capacity: its installed crude refining capacity Anning and Jieyang projects have all been pushed back.1
reached nearly 14.2 MMbpd by 2015, about 680 Mbpd higher Additional lower-S requirements in transportation fuels may
than in 2013, according to Facts Global Energy (FGE). China’s also delay the start of some new projects. China is implementing
refinery throughput in April averaged 10.54 MMbpd, up 6.9% a nationwide Euro 5 fuel standard by the end of 2017.
from a year earlier. Despite the threat of overcapacity, the country is still pursuing
Two new greenfield terminals began operations in the first many of its refining capacity additions. According to IHS, near-
half of 2014: CNPC’s Pengzhou and Sinochem’s Quanzhou. No ly 1 Bt of total chemical capacity has been added globally since
2000. China has accounted for more than 70% of this increase. Its
6 ethylene capacity is forecast to hit nearly 27 MMtpy in 2015, rep-
Production resenting an increase of more than 80% from 15 MMtpy in 2010.5
Natural gas production vs. consumption, Tcf

5 Consumption
Increasing regasification capacity. China is adding massive
4 regasification capacity. Two new terminals came online in 2014:
Imports exceeded exports
3
• The 3-MMtpy Qingdao import terminal developed
by Sinopec was commissioned in December with
2 a cargo from Papua New Guinea (PNG). Sinopec has
a 2-MMtpy long-term contract with PNG LNG.
1 • The Hainan LNG terminal (CNOOC’s 7th terminal)
received a commissioning cargo from Qatar in August
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014. The floating storage and regasification unit
(FSRU) has a nameplate capacity of 3 MMtpy and
FIG. 5. China’s natural gas production and consumption, 2000–2013. is the second terminal in China after Dalian to have
Source: US EIA.
reloading capabilities.

TABLE 1. Notable refinery projects and expansions. Sources: US EIA, based on FACTS Global Energy, IEA, Reuters and company information
Company owner Location Capacity, Mbpd Start date Notes
Sinopec Caofeidian/Tianjin 240 2020+ Construction: Received NDRC approval January 2015;
plans to process crude oil from Saudi Arabia
Sinopec Guangdong/Zhanjiang 300 2017 Construction: Developing with Kuwait Petroleum (30%)
and Total (20%)
Sinopec Hainan 100 2020+ Construction: Environmental approval received in 2013
Sinopec Luoyang 160 2020 Expansion project
CNPC/PetroChina Huabei 100 2017 Upgrading: Construciton
CNPC/PetroChina Anning/Yunnan 200 2016 Construction: Plans to process oil from Saudi Arabia and
Kuwait via the crude oil pipeline from Myanmar; JV with
Saudi Aramco (39%) and Yuntianhua Group (10%)
CNPC/PetroChina Guangdong/Jieyang 400 2018 Construction: JV with PDVSA (40%)
CNPC/PetroChina Tianjin 320 2020 Construction: agreement signed between partners;
JV with Rosneft (49%)
CNOOC Ningbo Daxie/Zhejiang 140 2015 Construction: Expansion to 300 Mbpd
CNOOC Huizhou Phase 2 200 2016 Construction: Expansion

62JULY 2015 | HydrocarbonProcessing.com
 Regional Report

Additionally, three terminals are being expanded:
• In Guangdong, a 4th tank with a capacity of 160 Mcm
is being constructed and is scheduled to be
commissioned by September 2015.
• The Jiangsu (Rudong) terminal will receive a 4th storage
tank with 200 Mcm of capacity. The completion is
scheduled for the end of December. The terminal has
a sendout capacity of 3.5 MMtpy.
• In Tianjin, a land-based expansion project will increase
FRSU terminal capacity to 6 MMtpy. Six new terminals
(Beihai, Shenzhen, Tianjin, Yantai, Yuedong and
Zhangzhou) are also under construction for a combined
capacity of around 16 MMtpy.
Decreasing reliance on coal. China’s rising coal produc-
tion and its sizeable industrialization and swiftly modernizing
economy helped it become the world’s largest power generator
in 2011. Consequently, as the world’s top coal producer, con-
sumer and importer (an estimated 66% of its energy consump-
tion is coal), the country is also the world’s leading energy-
related carbon dioxide (CO2 ) emitter, releasing 8,106 metric
MMt of CO2 in 2012.
The government has announced plans to reduce its overall
CO2 emissions by at least 40% between 2005 and 2020, mainly
in energy-intensive industries and in construction. These goals
assume a sizable reduction in coal reliance and a diversification
of energy supplies.
Boosting natural gas use. To alleviate high levels of pollu-
tion, the government has committed to increasing natural gas
use to at least 10% of total energy consumption by 2020, a jump
from its 2012 level of only 5%. In 2013, consumption increased
to 5.7 Tcf, 12% more than in 2012, and the country imported
approximately 1.8 Tcf of liquefied natural gas (LNG) and pipe-
line gas to make up the difference (FIG. 5).
China’s gas consumption in 2013 was 161.6 Bcm, against
production of 117.1 Bcm. The country’s gas demand is forecast
to increase to 315 Bcm by 2019, while its production is expect-
ed to rise to 193 Bcm. By 2035, the country is anticipated to
consume the same volume of gas as Europe.
In response to this rapidly expanding demand, China’s LNG
imports will rise significantly. Domestic LNG imports reached
15 MMtpy in 2012 and are expected to double by 2015.5
As with the oil segment, the three major NOCs dominate the
natural gas market. CNPC, which accounts for roughly 77% of
the country’s natural gas production, is the country’s largest nat-
ural gas company in both the upstream and downstream sectors.8
Sinopec operates the promising Puguang natural gas field
in Sichuan province, while CNOOC led the development of
China’s first three LNG import terminals at Guangdong, Fujian
and Shanghai.
Although the three NOCs own majority stakes in many of the
existing and proposed terminals, the changing natural gas land-
scape has created opportunities for independent energy compa-
nies in the LNG and unconventional gas production sectors.

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Hydrocarbon Processing | JULY 201563
 Regional Report

Two non-NOCs own majority stakes in terminals: Shenergy shale gas resources are in the Sichuan and Tarim basins in the
Group and JOVO Group, which became the first private Chi- southern and western regions, and in the northern and north-
nese company to hold a majority stake in a regasification termi- eastern basins (FIG. 6). Shale gas production grew by more than
nal. Several state-owned municipalities, distributors and devel- five times between 2013 and 2014 to reach 46 Bcfy.
opers own minority stakes in existing LNG terminals. Again, while many small companies have entered the shale
To replace coal with natural gas for power generation, ad- gas industry, NOCs own the vast majority of the resources and
ditional pipeline and LNG import terminal infrastructure will are partnering with various IOCs to develop them. Sinopec is
need to be constructed. LNG imports are forecast to rise from 18 boosting the production levels of its Fuling gas field and has re-
MMtpy in 2013 to over 60 MMtpy by 2020. Projects have been ported that it could reach output of 353 Bcf by 2017. However,
planned to raise the capacity to almost 80 MMtpy by 2018, but shale production is falling short of the original 2015 goal of 230
this could change with the development of the country’s shale Bcf and the hope of replicating the NA shale boom.
gas reserves, which the US EIA estimates to be the largest in the As seen in Europe, many Chinese shale plays are character-
world at 1.115 Tcf. ized by low organic content, meaning that producers will need
The government promises to encourage shale play develop- to drill more wells to equal US production volumes. The limit-
ment by prioritizing land approvals, allowing tax-free imports ed availability of water resources, the geological risks and lower-
of equipment and offering subsidies to explorers. The country than-expected production rates have complicated the exploita-
is pumping more than 2 MMcmd of shale gas, with a 2015 pro- tion of unconventional gas reserves. It will be easier for China
duction target of 6.5 Bcmy. to focus on tight gas production to meet the government target
China is also investing heavily in LNG projects in major gas- for total gas output of 420 Bcm by 2020.
producing regions, such as North America (NA) and Russia.
Coalbed methane and coal-to-gas. The coalbed meth-
Shale potential. China’s shale gas industry developers and ane (CBM) and coal-to-gas (CTG) industries in China are in
regulators face many challenges. Most of the country’s proven the early stages of development. Challenges to development
include lack of technical expertise, water shortages, regulatory
TABLE 2. China’s major CBM basins and their capacities hurdles, transportation constraints and competition with other
Name of basin Region Resources, Tcf % of total resources
fuels and conventional natural gas.
Despite CBM resources that are estimated at 1,300 Tcf, the
Ordos North 348.2 26.8 cumulative proven geological reserves in 2014 were just 19.7
Qinshui North 139.5 10.7 Tcf, representing only 1.5% (TABLE 2). The CBM transporta-
Junggar Northwest 135.3 10.4 tion network is gradually being constructed. At present, CBM
Dian-Qian-Gui South 122.5 9.4
transportation pipelines have exceeded 1,632 km, 90% of which
are in Shanxi province. Small liquefaction plants and trucks are
Erlian North 91.1 7 also used to transport CBM to demand centers. However, this is
Tu-Ha Northwest 74.9 5.8 insufficient to support high levels of CBM production and trans-
Tarim Northwest 68.2 5.2 portation. In 2013, only 596 MMcfd of CBM was used out of a
Tianshan Northwest 57.6 4.4
total output of 1.3 Bcfd.9
Since the majority of China’s CBM production comes from
Hailar North 56.5 4.3 the traditional coal mine extractions instead of surface opera-
Source: Facts Global Energy. tions, the utilization rate is much lower than those of other major
CBM producers in the world (US, Canada and Australia). Steady
growth of CBM production and consumption will be slow, so its
impact on China’s LNG imports will not be felt until 2025 or later.
Junggar After 2012, China rapidly approved CTG projects so that it
Urumqi could use its vast resources of coal to satisfy growing natural gas
Songliao
Turpan demand along the eastern and southern coastal areas. Looser
Tarim
Beijing government regulations and more favorable economics opened
Qaidam the door for the development of several CTG projects, but prog-
Ordos
China
ress has been slow.
Xian
Two operational CTG plants, Datang Group’s plant in the
Subei
Lhasa Chengdu Wuhan Shaighai
northern province of Inner Mongolia and Kingho Energy
Sichuan Group’s plant in northwestern Xinjiang province, produced only
Jianghan
Chongqing 75 Bcf in 2014, far short of the 530-Bcf target. The plants are run-
Assessed basin South Chian/
Other basin Guiyang Yangtze ning at low utilization rates due to technical problems and design
platform issues. Three other projects are under construction, including
Hong Kong Sinopec’s Zhundong project in Xinjiang province. China’s largest
CTG project is scheduled to come online in 2017 and connect
with pipelines carrying the natural gas toward eastern China.
FIG. 6. Shale gas and oil reserves. Sources: Advanced Resources CTG projects face high capital costs required to develop the
International Inc. and US EIA.
attendant infrastructure, scarce water resources and high levels
64JULY 2015 | HydrocarbonProcessing.com

of emissions. The government does not want the industry to
overbuild with many small facilities, so regulations require that
CTG plants operate at a capacity of at least 70 Bcfy.
Downstream transportation. Although China has nearly
35,498 mi of main natural gas pipelines as of late 2013, the net-
work is fragmented. NOCs, which operate the trunk pipelines,
are investing in the downstream transmission system (FIG. 7)
to supply demand centers and integrate local gas distribution
networks. Imports of natural gas via pipeline have increased as
production from Central Asia and Myanmar has grown and gas
infrastructure has improved in the region.
China has set a goal to achieve a pipeline network of 74,564
mi by 2020. CNPC is the key operator of the main gas pipelines,
including the west-east pipelines, and holds nearly 80% of Chi-
na’s gas transmission capacity.1 CNPC developed the ShanJing
pipelines, three parallel pipelines linking the major Ordos basin
in the north with Beijing and surrounding areas.
The company’s Zhongwei-to-Guiyang gas pipeline, com-
pleted in 2013, delivers gas from the West-East pipeline network
to markets in southwestern China. Sinopec operates long-haul
pipelines from the Sichuan province to Shanghai and the north-
central region to Shandong along the northeastern coast, while
CNOOC pipelines run mainly along the coastal areas of China.
A momentous deal. After years of negotiations with Russia
over import prices and supply routes, China has agreed to pur-
Select 161 at www.HydrocarbonProcessing.com/RS
Regional Report
chase 1.3 Tcfy of gas from Gazprom’s East Siberian fields. The
price tag is $400 B over a 30-year period.
The proposed Power of Siberia pipeline, which is expected to
come online in 2018, will connect Russia’s eastern Siberian gas
fields and Sakhalin Island to northeastern China. In November
2014, Gazprom and CNPC also signed a memorandum of un-
derstanding (MOU) for China to import 1.1 Bcfy from Russia’s
western Siberian gas fields.
Growing petrochemical demand. China plans to nearly dou-
ble its domestic ethylene capacity by 2025, reaching 33 MMtpy in
2020 and nearly 50 MMtpy by 2025. However, the country is ex-
ploring alternative supply options, such as coal-to-olefin (CTO)
projects and imports, to satisfy domestic petrochemical demand.
The US EIA reported that it is also seeing methanol-to-
propylene (MTP) and propane dehydrogenation (PDH) plant
construction to meet strong demand for propylene and propyl-
FIG. 7. CNPC is adding new pipelines for the country’s downstream
transportation sector.
Hydrocarbon Processing | JULY 201565
 Regional Report

ene derivatives. Propylene consumption is expected to grow by Increased interest in the LPG sector. Since PDH plants
around 3.1 metric MMtpy to 25.1 metric MMtpy in 2015. China primarily use imported liquefied petroleum gas (LPG) as feed-
has become the largest importer of propylene products, and stock, demand in China has increased in recent years (FIG. 9).
around 20 new PDH plants are expected to come online by 2018, Sinopec’s Qingdao ethylene plant was slated to become the
representing over 10 MMtpy of additional propylene (TABLE 3). country’s first ethylene plant to utilize natural gas and light
Propane demand from PDH units is estimated to reach 2.4 hydrocarbon feedstocks, like LPG and ethane. The 1-metric-
metric MMtpy, more than double the 1.1 metric MMtpy in MMtpy plant was to be completed in 2017, but its future is now
2014. China operates four PDH units with a combined propyl- uncertain. Half of the feedstock will come from imported natu-
ene capacity of 2.1 metric MMtpy: two 600-metric Mtpy units ral gas and ethane, and the remaining feed will be LPG produced
and two 450-metric Mtpy units, according to ICIS data. At an av- from a nearby refinery in Qingdao.
erage run rate of 70%, the four plants will require approximately China’s future olefin plants might allow for higher feedstock
1.8 metric MMtpy of propane. flexibility for lighter hydrocarbons. Unipec has inked two pro-
Two new PDH plants will boost capacity by a combined pane supply agreements over a five-year period with Enterprise
1.35 metric MMtpy. Yangzijiang Petrochemical will start up its Products (0.5 metric MMtpy) and Phillips 66 (1 metric MMt-
600-metric Mtpy PDH unit at Zhangjiagang in Zhejiang prov- py). CNOOC is exploring the use of LPG for its upcoming
ince in the first half of 2015, while Wanhua Chemical commis- 1-metric-MMtpy ethylene cracker in southern China’s Guang-
sioned its 750-metric MMtpy unit at Yantai in Shandong prov- dong province.
ince in March (FIG. 8). These units are expected to run at 70% of The increase in LPG imports may be due to what the Chi-
capacity this year based on projected propylene demand. nese call ‘deep processing.’ Deep processing plants could make
The country is also experiencing a surge in new methanol-to- more alkylate for the gasoline blending pool, or for the produc-
olefins (MTO) plants along China’s East Coast to offset increas- tion of methyl tertiary butyl ether (MTBE). Notably, apparent
ing domestic methanol demand. gasoline demand in China grew as much as 13% year-on-year
Just as shale-derived ethane is changing the game in NA, low- between April and May.10
cost coal from the inner regions of China is driving new invest- Gasoline wholesalers in China have a tax incentive to alkylate
ment in chemicals using CTO and coal-to-methanol (CTM) butane to produce a gasoline blendstock or MTBE. Deep pro-
technologies. In 2013, China produced an estimated 18 MMtpy cessing plants are finding alternative uses for their butane, pri-
of ethylene, according to IHS, while the total equivalent ethylene marily in the manufacture of isobutylene, maleic anhydride and
demand exceeded 30 metric MMtpy. To avoid over-dependency alkylates. So far, China has not needed to import butane for deep
on imports, 25 MMtpy of new ethylene capacity is planned. processing purposes, which only uses 93 metric Mtpy of butane.
By 2016 and 2017, 31.9 MMtpy of new ethylene, propylene Isobutane use, mainly for alkylation processes (as a precur-
and butadiene capacity could be built in China, potentially ex- sor to MTBE), accounted for about two thirds of the total bu-
ceeding demand growth and leading to a decline in capacity uti- tane used for deep processing, according to FGE. This year, de-
lization rates in the years ahead. mand for butane as feed for deep processing plants is growing.10
Last year, China produced 23 metric MMtpy of LPG, of
TABLE 3. China’s PDH plants which:
• 13.4 metric MMtpy were propane
Capacity, 2014 propane 2015 (est.) propane
metric consumption, consumption, • 3.3 metric MMtpy were normal butane
Company Mtpy metric Mtpy metric Mtpy • 6.3 metric MMtpy were isobutane.
Bohai Chemical 600 547.4 576
China has traditionally allocated two thirds of this LPG for
household use. This year, growing butane demand for deep pro-
Ningbo Haiyue 600 240 505 cessing has already impacted the LPG household allotment; it
Zhejiang Satellite 450 242.5 378 is estimated that only one third of the butane produced went to
Sanyuan Petchem 450 59 346 household use.
Yangzijiang Petchem 600 – 270
Reasons that might necessitate butane imports into China
include:
Wanhua Chemical 750 – 337.5 • Maleic anhydride production needs 95%-purity normal

1,000 180
800 140
Imports, Mbpd

Crude (RHS)

600 100
400 60
200 20
0 -20
Apr 14

May 14

Jun 14

Jul 14

Aug 14

Sep 14

Oct 14

Nov 14

Dec 14

Jan 15

Feb 15

Mar 15

Apr 15

Others LPG Naphtha Gasoline Jet fuel

Diesel Fuel oil Asphalt Crude (RHS)

FIG. 9. China’s imports of crude oil and petroleum products.

FIG. 8. The Yantai chemical complex. Source: OPEC.

66JULY 2015 | HydrocarbonProcessing.com
 Regional Report

butane, but China does not produce a large enough
volume of the quality required.
• Most new plants are located in eastern China and
Shandong province, where LPG production already
does not meet residential demand.
• Many of these plants are independent players that
do not have access to bulk butane volumes from
state-owned refineries.10
Setting higher standards for new petrochemical projects.
To boost efficiencies and ease public and international opposi-
tion to projects that are perceived as harmful to local inhabitants
and the environment, the NDRC has published a petrochemical
industry plan with higher standards.
The Chinese government has been faced with increasing pro-
tests against the construction of petrochemical facilities in heavi-
ly populated areas. Accordingly, the NDRC’s stringent standards
for new petrochemical facilities encompass several facets:
• Newly built crude distillation units (CDUs) must have
a production capacity of no less than 15 metric MMtpy,
or 300 Mbpd.
• Ethylene units should have a minimum capacity of
1 metric MMtpy.
• Fuels produced by the new refining units should meet
the equivalent of Euro 5 emissions standards.
• Petrochemical complexes should be built on abandoned
land, islands or peninsulas, and should have a crude
processing capacity of no less than 40 metric MMtpy
(800 Mbpd) and span at least 40 km.2
• The facilities will have 6 MMcm of crude and oil product
storage capacity.
• New paraxylene (PX) units should reach an annual
capacity of at least 600 metric Mtpy, while new
methylene diphenyl diisocyanate (MDI) units should
have a capacity of least 400 metric Mtpy. PX and MDI
projects must also meet pollutant emissions standards.11
Fuel demands. The growth in oil product demand has slowed
since a short growth spurt in 2010. Slowed economic growth,
decreased production from the coal and mining sectors that use
rail and trucks to transport products, greater efficiency in heavy
vehicles and the increased use of gas-powered vehicles are all
contributing factors to the slowdown in fuel demand growth.
Gasoline. With an estimated 23% share in 2014, gasoline is
still growing as China’s middle class expands and car sales rise.
Since Chinese drivers are less sensitive to changes in pump
prices, prices are not likely to have a near-term impact on China
gasoline sales. The drop in international crude prices does not
necessarily translate to pump prices; the NDRC raised retail
gasoline prices for the first time after 13 consecutive fuel price
reductions since July 2014, according to FGE.
Increased traffic congestion and its resultant lower mileage
driven, car purchase restrictions and the government’s push for

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Hydrocarbon Processing | JULY 201567
 Regional Report

more fuel-efficient vehicles are all expected to limit gasoline de- Demand growth in 2015 is expected to be flat as the freight
mand growth to around 7% in 2015.12 transport and construction sectors continue to soften.

Kerosine/jet fuel demand. Growth in kero/jet demand slowed
considerably in 2014 to 5%, from 13% in 2013. The drop for jet
fuel was, in part, due to passenger traffic utilizing high-speed rail
(HSR) instead of air options for short-to-medium trips.
The reinstatement of the value-added tax (VAT) on jet fuel
by the Chinese government in 2013 also took a toll on jet fuel
imports. An increase of up to 6% of kero/jet demand could be
brought about by lower fuel costs and reduced air fares, and the
elimination of fuel surcharges by air carriers.
With fuel costs accounting for 30% of air travel costs, reduced
jet fuel costs may somewhat reduce the incentive to raise overall
fuel efficiency, thereby providing further support to jet fuel use.12
Fuel oil. Lower bunkering demand and the increased use of
natural gas have caused a drop in fuel oil demand, as well. Con-
sumption tax increases are expected to reduce imports of fuel
oil and increase prices for teapot refineries, which are now in-
creasingly substituting imported crude oil as feedstock.
Looking ahead in 2015, China’s real petroleum products de-
mand growth is projected to pick up slightly to 2.7%.3 As the
country moves forward and pursues its ‘energy revolution,’ it
faces pressure to not only keep pace with the needs of an ever-
growing population and industrial infrastructure, but also to
improve its environmental practices and achieve greater long-
term, sustainable growth.

Gasoil. Several factors have contributed to a drop in gasoil de-
1
mand in the last few years, including declining growth and eco-
nomic structural changes, slower growth in heavy commercial 2
vehicle use, efficiency gains in freight transport, the govern-
ment’s goal of reducing overcapacity in high-polluting heavy in-
dustries, and reduced diesel usage in mining, trucking and rail 3
activities for a sagging coal industry. However, gasoil remains the
4
most widely consumed oil product in China. 5
According to the US EIA, sales of commercial vehicles
plunged nearly 11% year-on-year in 2014, down from 3% growth
in 2013 and peak growth of 32% over the 2009–2010 period. Complete literature cited avaibale online at HydrocarbonProcessing.com.
LITERATURE CITED
US Energy Information Administration (EIA), “International energy data and
analysis: China,” May 14, 2015.
Facts Global Energy (FGE), China energy series: oil edition, “Recent leadership
change: who’s who in the Chinese government concerning the oil and gas sector,”
July 2, 2013.
Organization of the Petroleum Exporting Countries, “Monthly oil market report,”
May 2015 .
FGE, China oil & gas monthly: data tables, March 2015.
Nichols, L., S. Romanow, A. Blume and B. DuBose, Hydrocarbon Processing’s HPI
Market Data 2015, “Global construction and investment,” “Refining,” “Natural
gas/LNG” and “Petrochemicals.”

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Now in its 12th iteration, WGLC is one of the largest women’s events in the oil and gas industry, Oxy Oil and Gas
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68JULY 2015 | HydrocarbonProcessing.com Pink Petro™
 Project Management
C. RENTSCHLER and G. SHAHANI, Linde
Engineering North America, Blue Bell, Pennsylvania

Better risk-management methods

ensure project success
Management of project risk is a challenge under normal
times. However, this crucial activity is exasperated in complex
projects as a result of the shale gas revolution. Pundits in success-
ful project management nearly all point to successful risk man-
agement (RM) as a key ingredient for successful project execu-
tion. Tight schedules and insufficient resources are at the heart
of the problems as projects “race” to capitalize on the less-expen-
sive feedstocks or fuel. The authors discuss the risks across ele-
ments of a project and assess impacts in recent years. Examples
demonstrate how risk can be successfully managed. In addition,
alternative strategies for dealing with risk will be discussed.
The North American renaissance. Five years ago, during
the “great recession,” the media was focused on the global eco-
nomic downturn. In particular, the refining and petrochemical
industries were impacted by highly fluctuating global supply-
and-demand conditions, extreme price volatility and tremen-
dous market uncertainty. There had been numerous plant clos-
ings, project cancellations and employee layoffs. New project
development and capital investment were greatly curtailed.
The challenge for the petrochemical and refining sectors is
to manage their businesses through the peaks and valleys and
to make informed investment decisions. Typically, investments
made at the bottom of an economic cycle perform better than
those made at the top. These investments have to be carefully
conceived, developed and executed. Larger complex projects
are accompanied by a corresponding increase in schedule and
cost risk. While it is not possible to eliminate risk altogether, it
is possible to manage risk effectively.
What is risk? In simple terms, risk is defined as an uncertain
event or condition that, if it occurs, has a positive or negative ef-
fect on at least one project objective. There can be many causes
for risks, and great efforts are typically undertaken to define
them. In a global market, there are risk drivers, such as oil price
volatility, stock market, political unrest, geopolitical events (as in
15
Natural gas wellhead price, $/Mcf

Today, the media is much more upbeat due to the discov- 10

ery and exploitation of shale gas and light tight oil in North
America (NA). Vast quantities of natural gas or shale gas are
being recovered due to advances in horizontal drilling and well
fracturing. Shale gas has become an attractive fuel and chemi- 5
cal feedstock. The advent of inexpensive shale gas has been re-
ferred to as a potential game changer, which is making NA ener-
gy independent and revitalizing manufacturing, particularly in
0
the refining and petrochemical sectors. In a recent article, new 2002 2004 2006 2008 2010 2012 2014
capital spending in the hydrocarbon processing industry (HPI) Source: EIA
was estimated to increase to $77.7 B.1 Some of this growth has FIG. 1. US natural gas price.
been due to inflation in the cost of raw materials, equipment
and construction. However, a sizable portion of the growth is
due to building larger, more complex projects, thus taking ad- 200
Cushing, OK, WTI spot price FOB, $/bbl

vantage of economies of scale.

150
Two recent scenarios highlight how the economy can
change drastically in the short run from one extreme to the 100
other. A good indication of volatility is depicted by the price of
natural gas (FIG. 1) and crude oil (FIG. 2). Similar fluctuations in 50
the price of other commodities from gasoline to ethylene have
exacerbated market turmoil, making investment decisions dif- 0
1990 1995 2000 2005 2010 2015
ficult. The price of essential construction materials (stainless, Source: Thomson Reuters
alloys, etc.) has also experienced a high degree of price volatil-
ity. This has impacted the actual costs of project equipment. FIG. 2. Crude oil price.

Hydrocarbon Processing | JULY 201569

 Project Management
Russia and the Middle East) and new technology. On the local
level, risks can be categorized as technical, cost, schedule, client,
contractual, weather, financial, environmental or people-related.
Despite the exhaustive efforts that generally go into defin-
ing risks, there are always subsets that are unknown. Donald
Rumsfeld said it very aptly, “As we know, there are known
knowns; and there are things we know we know. We also know
there are known unknowns; that is to say we know there are
some things we do not know. But there are also unknown un-
knowns—the ones we don’t know we don’t know.” The last
category, the unknown unknowns, is the most vexing for com-
panies executing major projects.
Risks can be looked at from different perspectives. Cer-
tainly, most risks are viewed as bad and threats to a project.
However, there are actually risks that can produce an upside.
Currency risks represent one area where this can occur during
international projects. If exchange rates change favorably dur-
ing the project, there may be a benefit to do fabrication in ar-
eas not planned during the bid stage. In addition to risks being
good or bad, another perspective is big or small. Certainly, the
focus should be on the larger risks with limited focus on small
risks. Finally, risks can be looked at from an impact/probabil-
ity standpoint, as shown in FIG. 3. Based on defined criteria for
impact, it may be decided to focus efforts on high-probability,
high-impact risks.
In a recent article, the importance of risk management
(RM) was stressed.1 This area was highlighted as a key factor
in determining the success of a project. In fact, tolerance to risk
drives many project elements, including contracting approach.
The method in which the owner chooses to execute a project
requires significant forethought to satisfy the risk tolerance of
both the owner and the executing company.
Traditional RM. RM is highlighted as one of the key success
factors for a project.2 Some have said that RM is probably the
most difficult aspect of project management. A project manag-
er must be able to identify the root causes of risks and to trace
these risks through the project to possible consequences. RM
techniques have been described in numerous publications and
generally include:
• Risk identification
• Risk assessment
• Risk mitigation
• Risk monitoring.
Impact TABLE 1. Capital project risks and mitigation plan
Low High
high high Engineering
Workload could delay project schedule
Probability
Procurement
Equipment prices could become higher
Low High due to currency
low low
Construction
Labor availability could add cost and delays
FIG. 3. Impact—probability matrix.
70JULY 2015 | HydrocarbonProcessing.com
Risk identification is the first and perhaps the most im-
portant step, since an effort is made to identify the source and
types of risks. This permits a more structured approach to fol-
lowing steps in RM. Remember: Risk identification is an itera-
tive process because new risks may arise through the course of
the project, while others may drop out.
Risk assessment can be performed by qualitative or quanti-
tative analysis, or both. Qualitative analysis assesses the impact
and likelihood of the risks and develops prioritized lists of risks
for further analysis or direct mitigation. Quantitative risk anal-
ysis is more refined and attempts to estimate the frequency of
risks and the magnitude of their consequences. This can be done
by tree analysis, cost-risk analysis or Monte Carlo simulation.
Once risks have been identified and assessed, the next step
is to define a risk mitigation plan. There are several means to
address risks, including: avoid the risk, reduce the risk, trans-
fer the risk, share the risk or accept the risk (do nothing). Risk
avoidance strives to eliminate the risk by going with a proven
technique or technology rather than with a more risky tech-
nique that could be cheaper if everything worked to perfection.
With risk reduction, a means is determined to “soften” the risk
through the involvement of outside influences, such as currency
hedging or involving industry experts.
Risk transfer is a risk-reduction technique that transfers
risk from the project to another party. Purchasing insurance is a
common means of transferring the risk to another party, which,
in this case, is the insurance company. Transferring risk to a
vendor is another possibility. Risk sharing generally involves
partnering with another party to share the responsibility. This
technique is particularly useful when the other company has
expertise or experience that the project team does not have.
Accepting the risk is likely to occur in cases where the risk is
so small that the effort to do anything is not worthwhile. Some
common risks in the different phases of an engineering, pro-
curement and construction (EPC) project, along with the ap-
propriate mitigation plan, are presented.
Risk alternatives often involve increased costs. Funds
used to address unforeseen events are called contingency funds.
They are generally set aside in a budget as a separate line item.
The final step in RM is to continually monitor risks to iden-
tify any changes related to new risks, risks being dismissed or
the magnitude of risks being modified. It is prudent to hold
regular risk review meetings through the project execution
phase to further assess risk probability and impact, and to de-
Risk Mitigation
Shift engineering to other centers
Pre-order long-lead components
Fabricate where currency is favorable
Hedge against currency variations
Fabricate more modular systems
Sequence to minimize field hours
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 Project Management
Recent projects
The EPC market has been very active in NA. The Linde
Group is investing over $250 MM in a state-of-the-art air
separation unit (ASU) and the expansion of a gasifier train
in La Porte, Texas. When these plants come fully onstream
later in 2015, they will constitute the largest natural-gas-
based gasification complex for petrochemical production
in the world. Separately, a 600-tpd ammonia plant is being
built in Rock Springs, Wyoming, for J.R. Simplot. These
large capital investments are being carried out in a relative-
ly “heated” market where construction labor is relatively
scarce, schedules are extremely critical and project costs
have to be carefully controlled. These challenges can be met
by applying the techniques discussed in this article. Over the
years, similar large projects have been executed under rela-
tively difficult conditions. FIG. 4 is an extremely large ASU
that was constructed on the US Gulf Coast.
termine if the magnitude of contingency funds are adequate.
Corporate senior management must always know the worst-
case scenario for a project, and a current risk plan is a key in-
gredient to providing this information.
New perspectives. As with any technique, the success is
highly dependent on the rigor to which principles are fol-
lowed. RM must be applied from proposal inception through
completion of a project. Too often, risks are identified early in a
proposal and continual follow-through is neglected. This only
partially accounts for the effects, and it does not provide the
insight for the addition of further risks or deletion of risks that
do not materialize.
A key to successful RM is the continual engagement of expe-
rienced people in the process. Finding the unknown unknowns
is the challenge for embracing project risks. This requires par-
ticipants to ask the tough questions and to have foresight into
the future. This is best done by veteran people. Since there are
only a limited number of experienced people, these individu-
als should be used strategically within the process. One idea is
to have highly seasoned people circulate across a few projects,
thereby getting the greatest impact from the RM process, but
also allowing for a “lessons learned” exchange across projects.
Innovation and advancements in technology are having a dra-
matic effect on the way engineering projects are executed. This
technology boon has produced a very positive effect on RM. For
example, it is now possible to access the virtual model live on the
jobsite and view subcontractor installations to reduce risk in con-
flicts and clashes. Drones are being used on construction sites to
monitor safety and other hazard risks. Robots can ensure high-
quality and timely production of routine construction tasks.
These and other technology areas can benefit any RM plan.
In particular, Internet and software are having a dramatic
effect on productivity and RM. General Electric CEO Jeffrey
Immelt said at the GE Intelligent Platforms Business 2014 User
Summit, “All companies need to become Internet and software
companies. The industrial world is changing dramatically, and
72JULY 2015 | HydrocarbonProcessing.com
FIG. 4. Large ASU constructed on the US Gulf Coast.
those companies that make the best use of data will be the most
successful.” The more data routinely taken on a project, the
greater likelihood that the project risks can be controlled, and
getting all of this data is now possible with proven Internet and
software capabilities.
Finally, RM must be driven from the highest level of an or-
ganization. How risks are handled represents the difference
between a successful (profitable) project and one fraught with
problems. Some organizations have adopted a senior-level posi-
tion, such as vice president of RM, to ensure focus and common-
ality of approach in this area. Whether or not the position is for-
malized to this degree, considerable senior-level focus is needed
in RM, particularly as projects become more challenging.
Options. Recent years have demonstrated the volatility that can
exist with large refining and petrochemical projects. These proj-
ects often face enormous risk, and how this risk is handled rep-
resents the difference between success and failure. It is impor-
tant to approach RM in a rigorous manner from project concept
to execution. This involves the four-step process of risk identifi-
cation, assessment, mitigation and monitoring. It is also impor-
tant to have more seasoned managers and engineers involved so
that the best minds are involved in devising and implementing
an effective risk plan. Finally, technology offers many opportu-
nities to collect and monitor data crucial to successfully manag-
ing risk. This provides advantages that did not exist in the past,
and can be a deciding factor in successful RM.
LITERATURE
1
Rentschler, C. N. and G. H. Shahani, “Successful project development and execu-
tion: Beyond EPC to ‘T-EPC,’” Hydrocarbon Processing, December 2014.
2
Project Management Institute, Guide to the Project Management Body of Knowledge
(PMBOK Guide), 4th Ed., Newtown Square, Project Management Institute, 2008.
BIBLIOGRAPHY
Culp, S., “Managing capital projects in a high-risk world,” Forbes, May 29, 2012.
Jutte, B., “10 golden rules of project management,” Project Smart, 2014.
Merritt, G. M. and P. G. Smith, “Techniques for managing risk,” Field Guide to Project
Management, 2nd Ed., Chapter 13, 2004, John Wiley & Sons Inc., New York, New
York.
Merrow, E. W., Industrial Megaprojects, Concepts, Strategies and Practices for Success,
John Wiley & Sons, New York, New York, 2011.
Special Advertising Section, Engineering News-Record, November 10, 2014.
Symonds, M., “The problem with project risk management,” IT Consultant, August
6, 2013.
Turbit, N., “Basics of managing risk,” The Project Perfect White Paper Collection.

Improve LPG treating via advanced
amine-solvent recovery technologies
Processing liquefied petroleum gas (LPG) in refineries us-
ing amine units has its challenges with respect to hydrogen
sulfide (H2S) and mercaptans removal. Amine sweetening of
LPG can also result in major amine solvent losses. Such losses
are not only confined to the loss of the amine solvent itself,
but they can also have a negative impact on downstream pro-
cesses, such as caustic treaters, molecular (mol) sieve dryers
and alkylation units. Often, the end result is that the final hy-
drocarbon product is out of specification. Copper-strip corro-
sion analysis is a common method that determines whether a
final product is in specification. A difficulty for hydrocarbon
processing industry (HPI) plants is that amine carryover is
not understood well (beyond soluble losses), and there is a
lack of good analytical techniques to detect amine carryover
in an LPG sample cylinder.
This article will discuss capacity and throughput improve-
ment in an LPG treating unit, made possible by implementing
an amine recovery program. The integrated use and benefits
of new techniques for testing and quantifying amine losses, in-
novative technologies for amine recovery and improvements
for increased plant processing capacity are also presented.
BACKGROUND
A US refinery added a caustic treating unit downstream of
its existing LPG amine treater for deeper sulfur removal.1 This
was done to consistently ensure passing of copper strip testing.
While this enhanced the LPG quality in terms of sulfur contam-
ination, the caustic treating unit was experiencing intermittent
foaming episodes, which, if left unattended, would affect the
LPG product quality. The plant was also experiencing amine
losses based on inventory replacement, and it was believed
that amine carryover was what was causing the instability of
the caustic treating unit and amine losses. To help mitigate the
instability of the caustic-treating unit, an emulsion breaker was
continuously added to the LPG. Despite these operating is-
sues, the refiner also wanted to enhance the throughput capac-
ity of the LPG system. Increasing LPG flowrates would only
worsen the existing amine losses. To increase LPG production
rates, several items needed to be achieved and these included:
• Determining if the current amine absorber had the
treating capacity for the increased flowrates, including an
engineering review of the LPG and amine distributors
Gas Treating
D. ENGEL and H. BURNS, Nexo Solutions,
The Woodlands, Texas; and B. SPOONER,
Amine Experts, Kemah, Texas
• Preventing carryover amine from contaminating the
caustic treating system
• Recovering any amine carried over with the treated LPG
• Removing the need for continuous chemical injection.
To determine if the amine absorber had the capacity for in-
creased LPG flow, the tower was evaluated, using an advanced
simulation software package.2 This included a review of fluid
velocities to determine if the values were within industry-ac-
cepted ranges.
Contaminants add problems. Amine carryover with treated
LPG is often not a fully understood phenomenon. Sometimes
it is as simple as a treating tower being operated above design
capacity. Often, there are many situations where all operational
conditions are in normal ranges, and amine losses and carryover
are still experienced. This can be a result of contaminants such
as surfactants, inherent design deficiencies in the treater, stabi-
lized emulsions, fouling, etc. Among the various complications,
amine units using methyldiethanolamine (MDEA) will cut
back the typical 50% concentration in water to 40% or less to
avoid emulsion formation and excess losses of MDEA when the
amine system is tied to other gas treating absorbers.
Wash systems. Using water-wash systems as a method of
amine recovery after amine treating is common industry prac-
tice. However, the trouble with surfactants and emulsions is
that a conventional water-wash tower or drum may still not re-
cover enough of the amine due to these devices’ low separation
efficiencies. Conventional water-wash equipment will usually
incorporate a mesh pad, but this is still not considered a high-
efficiency separator and emulsions are still capable of passing
through these devices unimpeded. Even oversizing the separa-
tor to allow for more residence time has no significant effect,
and it only results in higher costs for equipment that is already
large and expensive. Designing a system that is capable of high-
efficiency contact combined with high-efficiency separation
was the task for this project.
SIMULATION STUDY
A simulation study was conducted to determine the treat-
ing capacity of the LPG/amine absorber. The system was com-
posed of the amine treater, a knockout (KO) drum and an LPG
coalescer for separating the amine that was carried over. The
amine used was MDEA. With the issues experienced in the
Hydrocarbon Processing | JULY 201573
 Gas Treating

caustic treating unit, it was believed that the KO drum and co- LPG treater operational data. The operating data for
alescer were lacking in the separation efficiency necessary for the LPG amine unit treater is summarized in TABLE 2. The
this unit. The first step was to understand if the treater could two LPG feed streams combined to yield a feed temperature
still remove the H2S in the LPG to the desired specification at of 95°F. This data indicates a 15° temperature difference be-
the higher flowrate of 2,000 bpd from 1,259 bpd. tween the lean amine and the combined inlet LPG stream. A
The amine unit operated with the LPG-amine solution in- cooler amine temperature would benefit the performance of
terface at the top of the column. The amine is the continuous the amine in the LPG contactor (~105°F) for reaction ener-
phase, and the LPG is routed into the bottom of the treater, getics. The differential temperature between the two liquids
dispersed, and bubbled up through the amine solution column, should be as low as feasible; down to 5°F on the blended prod-
which was operated at 205 psig and had an internal diameter of uct if this will not affect any gas absorbers. Determining the
29 in. with 16 ft of packing. optimum circulation rate for LPG treaters is based on several
LPG compositional analyses. The feed LPG composition different criteria:
to the amine unit was provided by the facility and was used as 1. The recommended ratio of amine to LPG for this
the basis for this study. TABLE 1 summarizes the various compo- treater is > 1:10. This is fine-tuned based on the
nents of LPG stream. treated LPG H2S content.
LPG system review. The data provided by the facility was 2. The recommended “best practices” guideline is
used to set up a model of the LPG treater (A2005), using the a combined cross-sectional liquid flowrate
simulation software package with two LPG streams: liquids (LPG + MDEA) of < 15 gpm/ft2. This is to help
recovery unit (LRU) and crude.2 FIG. 1 illustrates the LPG sys- minimize amine entrainment in the LPG. References
tem modeled. such as the GPSA Data Book allow 20 gpm/ft2, so this
guideline is not out of the realm of published values.
TABLE 1. LPG stream composition Unfortunately, there is no accurate way to concretely de-
Component LPG from crude, mol% LPG from LRU, mol%
termine the number of “theoretical stages” in the LPG tower
with the used simulator. Two 8-ft sections of packing are equal
Methane 0.3 0.0
to roughly 2.5 theoretical stages (determined by the manufac-
Ethane 3.0 10.0 turer), which is not possible to enter into the simulator. In-
Propane 25.7 35.1 stead, simulations have been run at both two and three stages.
1-Butene 0.1 0.13 The actual operation should be somewhere inbetween the
two results.
n-Butane 50.64 10.0
Isobutane 20.1 20.1 Simulation and flow calculation results. The two-theo-
Isopentane 0.0 20.1 retical-stage simulation requires higher amine circulation rates
n-Pentane 0.0 2.5 to achieve the same level of H2S removal as three theoretical
n-Hexane 0.0 2.0 stages. To treat the LPG down to below 10 ppm of H2S, simu-
lations predict the optimum circulation rate of 30% MDEA
Carbonyl sulfide 0.01 0.01
in the two-theoretical stage case is 120 bpd or 3.5 gpm. The
Carbon disulfide 0.01 0.0 three-theoretical-stage simulations require an amine flowrate
Methyl mercaptan 0.01 0.01 of 70 bpd or 2.04 gpm. Combined liquid flux conditions using
Ethyl mercaptan 0.02 0.01 two and three theoretical stages is calculated in TABLE 3. Both
Hydrogen sulfide 0.25 0.05 total liquid flux values were within the maximum recommend-
ed guideline. TABLE 4 shows the various simulated parameters
for the increased LPG flow into the amine treater:
TABLE 2. LPG amine treated operational data
Parameter Actual flow Maximum flow case Treated LPG
MDEA strength, % 30 30
MDEA lean loading* 0.0007 mol/mol 0.0007 mol/mol 2
Lean amine temperature, °F 110 110 Lean MDEA
3
Inlet crude LPG flow, bpd 1,250 2,000
Inlet crude LPG 104 104 LRU
5
temperature, °F
Mixer A2005
Inlet crude LPG H2S 2,500 2,500
content, ppm 1
Inlet LRU LPG flow, bpd 650 1,000
4
Inlet LRU LPG temperature, °F 80 80 Crude
6 Rich MDEA
Inlet LRU LPG H2S 500 500
content, ppm
FIG. 1. LPG amine absorber.
*Taken from the amine vendor analysis

74JULY 2015 | HydrocarbonProcessing.com
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with the proprietary JeSOL™-9 treating reagent to oxidize heavy
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 Gas Treating

• The treated LPG will contain 7 ppm–8 ppm of H2S in Therefore, full-flow filtration of the lean amine feeding this
either the two- or three-theoretical-stage scenarios. Both treater is recommended.
are below the 10-ppm specified maximum specification. The recommended packed bed height is between 8 ft and
• With the inlet LPG containing 0.12 mol% H2S, and the 12 ft. The tower’s bed heights are 8 ft. If the packing bed height
amine circulation rate at 70 bpd–120 bpd, the calculated is too high, then the LPG bubbles can coalesce and form large
rich amine loading was between 0.07 mol/mol and droplets. This reduces the contact efficiency between the LPG
0.12 mol/mol. and amine. Each packed section must have effective redistribu-
• “Equilibrium loading” refers to the theoretical maximum tion to re-disperse the LPG droplets and correct any channel-
loading achievable between the H2S and amine. This ing, which may have occurred in the previous bed. The most
loading is dependent on the temperature and pressure common packing material is 316 stainless steel. When using
conditions in the treater and the H2S concentration of metal packing, it is important to ensure that the metal is fully
the inlet LPG. It is normally recommended not to exceed wetted by the amine before bringing any LPG flow into the tow-
80% of equilibrium to avoid the risk of corrosion and er, as metal can be wetted by either amine or LPG.
subsequent fouling. The H2S equilibrium loading was
36%–61%, which was well below the recommended LPG distributors/packing support tray. The distributor/
maximum, indicating the tower should not suffer from support tray is very important, not only for supporting the
corrosion. It also indicates that the circulation rate of the packing that sits on it but also to control the LPG droplet size.
amine was appropriate. The LPG pools below the plate and bubbles upward through
The current treater has the capacity to remove the H2S lev- the packing. The amine flows downward through several path-
els to the desired specification of 10 ppm or less. ways (downcomers) to below the LPG directly under the plate.
The recommended design velocity through the LPG distrib-
LPG TREATER INTERNAL COMPONENTS utor is 70 ft/min with an operational window of 30 ft/min to 75
Once it was determined that the absorber had the neces- ft/min. Excessive velocity of the LPG droplets can create emul-
sary treating capacity for H2S removal, a review of the inter- sions, whereas low droplet velocity can result in insufficient dis-
nals was necessary. tribution and entrainment of LPG in the rich amine. The dis-
tributor has hole diameters of 124 in. × 0.44 in. The distributor
Treater packing. The packing itself should be 2 in. in diam- must be checked for an LPG flowrate of 2,000 bpd, or 58.4 gpm.
eter, to maximize available liquid flow area. At present, the LPG To calculate LPG droplet velocity for this configuration:
treater uses random packing (high-performance packing in a
saddle-type configuration), which is commonly used. For the Cross-sectional area = (124 × π × (0.44 in./12 in./ft)2/4)
packing to function correctly, it must be kept clean at all times. = 0.13087 ft2
Design LPG flow = (58.4 gal/min) × (ft3/7.48 gal)
TABLE 3. Liquid flux conditions using theoretical stages = 7.81 ft3/min
Two theoretical Three theoretical Design velocity = 11.75 ft3/min ÷ 0.13087 ft2
stages stages = 59.68 ft/min
LPG flowrate, gpm (bpd) 55.7 (1,910) 55.7 (1,910)
The total LPG orifice velocity is below the maximum accept-
MDEA flowrate, gpm (bpd) 3.5 (120) 2.04 (70)
able guideline of 75 ft/min. Nevertheless, the LPG distributor
Total liquid flow 59.2 57.7 drawing states it was designed for an LPG flow of 46.7 gpm. If
(LPG + MDEA), gpm
there is a case where the LPG flow is increased beyond 2,500
Cross-sectional area of 4.58 4.58 bpd (nearing the limit of 75 ft/min), then the plant should con-
29-in.-diameter treater, ft2
sider installation of a new inlet distributor plate.
Total liquid flux, gpm/ft2 12.9 12.6 Ladder-type distributors are most commonly used to inject
the LPG into the tower, which is then dispersed through the
TABLE 4. Simulated parameters for Increased LPG flowrates smaller openings on the packing support tray. Adequate space
must be available below the distributor and the rich amine level
Simulation results—LPG flow conditions
to minimize LPG entrainment. It is recommended that amine
Two theoretical Three theoretical have a 10-min residence time in the bottom of the treater before
stages stages
leaving to the downstream flash tank. It was also suggested that
30% lean MDEA circulation 120 70 the LPG treater be retrofitted with a ladder-type inlet distribu-
rate, bpd
tor consisting of a series of parallel tubes fed by a central pipe.
Rich-amine loading at 0.07 0.12 This is a commonly used design and should be adequate. The
low flow, mol/mol
orifices in the parallel tubes must be directed downward across
H2S equilibrium loading, % 36 61 the entire cross-sectional area of the packing.
H2S in treated LPG, ppm 8 7
MDEA in treated LPG, lbmol/hr 0.0046 0.0045
LPG/AMINE SEPARATION, TESTING
Other sulfur species, ppm 109 109
AND AMINE RECOVERY
Once it was determined that the amine treater did not need
Note: The maximum values of H2S in both the LRU and crude feeds were used in the
simulations. All other component values were the normal values. to be replaced and had the capacity for higher flowrates, then
76JULY 2015 | HydrocarbonProcessing.com
 Gas Treating

the issue of instability in the caustic treater needed to be ad-
dressed.1 At maximum flow conditions of 2,000 bpd, the treated
LPG will certainly carry more amine with it.
To address the amine carryover challenges, the plant installed
an advanced amine recovery system.3 This recovery system has
two functions: recovery of free and emulsified amine, and recov-
ery of soluble amine in the treated LPG. This system would, in
turn, protect the downstream caustic treating unit from any amine
contamination.1 The advanced amine recovery system, as a skid,
incorporates a filtration section for particle removal followed by
water injection, mixing and contacting/separation to extract free,
emulsified, and a portion of the dissolved amine from the LPG
product.3 The advanced amine recovery process was chosen for
its high efficiency of mass transfer coupled with its ability for
high-separation efficiency in a small equipment envelope.3
LPG sampling procedure and MDEA analysis. Once the
recovery skid was in place and operating, qualification of its
performance was needed to ensure amine would not upset the
downstream caustic treating unit.1 As mentioned earlier, de-
tecting amine in LPG is difficult. The sampling procedure was
specifically designed to accommodate the analytical method
selected for this application. Since there is no direct method
to properly quantify amine concentration in LPG, an indirect
method was used. The method involves transferring the amine
by extraction into a suitable immiscible solvent for analysis by
ion chromatography (IC).
The sampling was performed by collecting LPG into stainless
steel cylinders filled with a predetermined amount of distilled
water. Cylinders were then exposed to low vacuum to properly
accommodate the subsequent LPG sample volume. The cylin-
ders were equipped with internal mixing elements to maximize
mass transfer between the two liquid phases. A total of four cyl-
inders were used to collect the LPG samples, at two different
water injection rates.
During the initial system operation, the water injection
rate was adjusted to 1.5 gpm prior to LPG sample collection.
The second sets of LPG samples were collected at a water in-
jection rate of 1 gpm. Each cylinder was attached to the sam-
pling port and filled with LPG. The water phase was removed
from the cylinder, and the remaining LPG was vaporized into
a known volume of distilled water (100 ml) to capture any re-
sidual amine that might be left. The empty cylinder was further
rinsed internally with distilled water (30 ml to 50 ml) to cap-
ture any other possible amine traces. All aqueous samples were
processed by IC analysis for amine determination. The analy-
sis was performed using an advanced column and an isocratic
methanesulfonic acid (MSA) eluent.4
SAMPLING AND AMINE RECOVERY RESULTS
The results of the various water samples analyzed by IC
are shown in TABLE 5. The concentration represents the total
methyl MDEA mass contained in the LPG as determined by
combining the results of the extraction water, purge water and

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Hydrocarbon Processing | JULY 201577
 Gas Treating
TABLE 5. MDEA concentration in the LPG stream at the inlet
and outlet of the advanced amine recovery system3
Sample 1-gpm injection rate 1.5-gpm injection rate
Inlet LPG amine 110.3 179.2
concentration, ppmm
Outlet LPG amine 20.6 21.1
concentration, ppmm
Amine-recovery system 81.3 88.2
efficiency, %
TABLE 6. Amine recovery at 2,000 bpd of LPG and 1.5-gpm
water injection rates
Amine-recovery Amine-recovery
Parameter
system inlet system outlet
LPG flow, gpm 58.3 58.3
LPG mass flow, lb/min 253.0 253.0
Amine concentration, ppmm 179.2 21.1
Amine flow, lb/day 65.3 7.7
rinse water fractions. The recovery efficiency associated with
a water injection rate of 1.5 gpm is higher compared to the
1-gpm water injection rate. This is expected, as it is generally
observed that recovery increases at higher water injection rates.
The inlet amine carryover was higher from the first sampling
to the second by nearly 60%. This could be part of the normal
fluctuation of the process, but the higher water injection rate
caused a higher percent of amine recovery (by 9%) with a simi-
lar residual amine concentration in the LPG effluent.
At a 1.5-gpm water injection rate, the amine recovery was
calculated to be at 88.2%. The expected solubility of amine
into the LPG is between 90 ppm to 150 ppm. The recovery
system is able to remove the amine concentration below solu-
ble levels. TABLE 6 highlights what it means in terms of amine
recovery under normal operation at a 1.5-gpm water injection
rate. The following table is based on an LPG flow of 2,000 bpd
and an LPG density of 0.52 kg/l.
TABLE 6 shows that a significant amount of amine is being
recovered daily by the amine recovery system (89%). The re-
covery amount is the difference between the amine recovery
system inlet and outlet. This equates to 57.6 lb/day of amine
recovered. The recovered amine can be, in principle, added
back to the amine unit, minimizing losses.
Options. The first phase of the evaluation determined the
treatment capacity of the LPG amine contactor for a higher flow
up to 2,000 bpd. The treater was simulated.2 It was concluded
that the treater was able to reduce the H2S content below the
10 ppm specification. The combination of the detrimental im-
pacts on the caustic treater and higher amine-treater flowrates
required use of an amine recovery system. The advanced amine
recovery system was installed in the treat LPG stream, at the
outlet of the amine unit.1, 3 The system was selected for its high
amine recovery efficiency and effective phase separation, in ad-
dition to a small equipment envelope and low cost.
Comprehensive performance testing of the system was
conducted using equipment designed specifically for LPG
sampling and amine extraction. The sampling technique and
78JULY 2015 | HydrocarbonProcessing.com
analysis of amine extracted from the LPG yielded accurate
quantification of both amine losses and amine recovery using
the advanced amine recovery system.3 The test data showed
that the recovery system was able to remove the MDEA amine
solvent in the treated LPG to below soluble limits. After the
advanced amine recovery system was installed and operated at
1.5-gpm injected water rate, the amine recovery efficiency was
nearly 89%.3 This translated to a savings of about $120,000/
yr only in amine solvent. However, not only was the MDEA
amine recovered, but the various impacts downstream at the
caustic treating unit and other units were greatly reduced.1
An evaluation of the amine system equipment design and of
the operation of that equipment in comparison to design guide-
lines and best practices was also conducted. It was recommend-
ed to change the packing rings and upgrade the inlet LPG dis-
tributor in addition to adjusting the lean amine temperature.
NOTES
1
The THIOLEX process licensed by Merichem uses the FIBER FILM Contactor
as the mass-transfer device and caustic as the treating reagent to remove acid gas
and mercaptan compounds from liquid and gas hydrocarbon streams.
2
ProTreat is a licensed simulation software.
3
The Exion system for amine recovery was designed to recover carried-over amine
and to extract residual dissolved amine in LPG streams; the process is licensed by
Nexo Solutions.
4
A Dionex IonPac column.
DAVID ENGEL, managing director of Nexo Solutions, has more
than 20 years of industrial experience in a variety of areas,
including chemical synthesis, corrosion-resistant materials,
sensors, light-to-energy conversion, membranes,
nanotechnology, separation technologies, analytical methods
and chemical additives. Dr. Engel holds 17 US patents covering a
wide array of engineering inventions, and is the author of several
technical and scientific papers. He has developed business and technology for
Eastman Kodak, Eli Lilly, Pentair, General Electric and Sulphur Experts. Dr. Engel
has specialized in advanced process systems and multicomponent separation
methods for removing or mitigating contaminants in process streams. He is the
co-founder of Filtration Experts, a division of Sulphur Experts, and managing
director of Nexo Solutions. Dr. Engel holds a BS degree in industrial chemistry and
a PhD in organic chemistry, and is Six-Sigma certified. He is member of the
American Chemical Society and the Gas Processors Association. He also serves as
the president of the American Filtration & Separation Society (Southwest Region),
a member of GLC Consulting, an editorial board member for Elsevier, and a
member of the board for Genesis BioHealth Co. and Amine Filtration Co.
HEATH BURNS has over 14 years of experience in the oil, gas
and process industries with regard to filtration and separation
technology. He has a well-rounded background in
manufacturing, R&D, pilot testing, engineering design and
business development. Mr. Burns has extensive field experience
in solid/liquid, liquid/liquid and gas/liquid separations. He has
worked extensively with chemical process plants and natural
gas facilities, troubleshooting fouling issues and determining the best technology
for mitigation of contaminants. Mr. Burns holds a BS degree in mechanical
engineering technology from Texas A&M University.
BEN SPOONER, a 1998 graduate of the University of Alberta’s
petroleum engineering program, has spent his entire career
as a process engineer, focusing almost entirely on amine
and sour water systems. He has been working for Sulphur
Experts since 2003 and has been heavily involved with the
troubleshooting, designing, testing and starting up of amine
systems in over 25 countries around the globe. Mr. Spooner
is also a principal member of the Amine Experts Seminar presentation team,
co-author of Amine Treating and has authored several papers dealing with amine
treating and sour water stripper optimization. Prior to joining Amine Experts,
he worked as a roughneck on drilling rigs, an operator at a gas processing
plant in northern Alberta, and as an engineer in the technical services
department of a large amine vendor.
 Management
B. GLASSCOCK, Solomon Associates, Dallas, Texas

A data-driven, experience-based approach

to workforce optimization
In recent years, many energy-intensive companies have
sought to “cut costs at all cost.” Frequently, the decision is made
to arbitrarily reduce staffing levels as a primary vehicle for re-
ducing costs. Rather than viewing facility staff as a key asset that
leads to higher performance and profitability, these organiza-
tions focus on reducing the cost of staffing by decreasing cost
per staff member, the number of staff, or both.
Organizations utilizing this approach also tend to use chang-
es in organizational structure to solve business problems, only
to find that another structural change is required two to three
years later. Through this approach, organizational health and
competency are given little consideration and, in most instanc-
es, unintended consequences can include reduced productivity,
poor organizational health, undermined safety and lower profit-
ability. In the end, these organizations end up paying a price that
far exceeds the apparent cost savings, and business problems
continue to go unresolved.
There are alternatives for implementing successful and sus-
tainable staffing changes. Staffing changes for the purpose of
improving profitability should be viewed as an optimization
process rather than a reduction process.
• Achievement of targeted business safety, environmental
and financial objectives
• Visible and strong leadership at all organization levels—
management, supervision and staff
• Clearly defined and consistently understood accountability
and responsibility for each person participating in the work
processes and practices that make up each business
• Leadership that is viewed as consistent, fair and
competent by a facility’s employees and executive
management
• Efficient work processes that are consistently
implemented across the business
• Utilization of best practices to carry out key business-
related activities
• Individual employee competencies—knowledge, training,
qualifications and experience
• Employee utilization.
These factors must be considered when modifying existing
organization structures and staffing levels, and when develop-
ing organizational and staffing plans for new facilities. Correctly
analyzing them and developing effective recommendations to

Workforce optimization consulting. Workforce optimiza-

tion consulting (WOC) moves beyond the simple quantita- 16
tive formulas and across-the-board cuts that many companies
employ in an attempt to reduce costs. The data-supported 14
staffing assessment approach (FIG. 1) consists of proprietary
methodology and tools, as well as seasoned consultants focused 12
on helping operators determine and implement the optimum
workforces for their facilities and companies within the con- 10
Direct staff ratio

text of the business process. Truly optimum staffing results in

sustainable benefits of improved profitability, safety, regulatory 8
compliance, a highly competent workforce, and a healthy and
effective organization. 6
Successful workforce optimization methodologies are
grounded in industry best practices and require a thorough 4
analysis of a facility’s total workforce that embraces both quan-
titative and qualitative criteria. Comparing work practices at a 2
particular site to top performers will yield staffing recommen-
0
dations that are both realistic and sustainable. Onsite interac- 0 500 1,000 1,500 2,000 2,500 3.000 3,500 4,000
tion with the facility’s workforce is key to measuring workforce Direct full-time equivalent employees
morale, competency and organizational effectiveness.
From a practical viewpoint, workforce competency compris- FIG. 1. Non-salaried to salaried employee ratio vs. total staffing level.
Better performers generally have higher ratios in the 6–8 range.
es a number of factors:
Hydrocarbon Processing | JULY 201579
 Management
help achieve them requires consultants who have extensive ex-
perience and a successful track record.
Implementing a WOC solution considers the time required
to achieve organizational maximum competency when defin-
ing recommended organizational structure and staffing levels.
Actual individual employee competency must be measured
when determining the number of employees required to per-
form identified workloads within reasonable timeframes and at
sustainable work rates.
Organizational health. A competent and valued workforce is
the foundation for good organizational health, which essentially
translates to employee motivation:
• How happy are the people that come to work each day?
• Are working relationships adversarial or cooperative?
• Does communication occur freely and effectively?
• Is there mutual respect between all components of the
workforce?
• Is the workforce a team rather than a collection of many
individual franchises?
• Is there a clearly defined and balanced value relationship
between management and employees?
• Do employees feel a sense of pride regarding their jobs
and the company for which they work?
A quality WOC methodology should utilize an employee per-
ception survey to help measure employee perception of organi-
zational health and performance. The methodology should also
evaluate employee experience levels from both a department and
company perspective. The methodology should consider quali-
fications, education and training, preferably for everyone in the
organization. This information is valuable when looking to either
qualitatively or quantitatively measure the key elements compris-
ing workforce competency (i.e., knowledge, training, qualifica-
tions and experience) and how well these elements are utilized.
Extensive data request. WOC begins with a request for de-
mographic data, such as the age groupings of personnel and their
experience levels. The data should include listings of qualifica-
tions; length and type of education; training programs that em-
100
21
29 37
80
18
Efficiency, % of time
60
14
48
40
53
49
31
20
Non-value added
Necessary
Value added
0 Results must also be routinely measured and evaluated so that
Maintenance Maintenance Craftspersons
engineer planner
FIG. 2. Examples of measured work efficiency by type of work.
80JULY 2015 | HydrocarbonProcessing.com
ployees attended; and positions that employees have held in the
company and in previous employment.
Employing a comprehensive methodology requires gather-
ing a significant amount of operational and business informa-
tion. For example, process flow diagrams and written proce-
dures should be requested. If work processes have already been
mapped, copies of those maps will be needed. If the facility has
any documented practices to accompany the procedures, those
should also be gathered. This information is used to identify key
work processes for mapping to develop an understanding of how
work is actually conducted across the business. Additionally, a
targeted interview list and schedule, along with a work sampling
plan, should be developed to determine employee utilization.
These information and data reviews are aimed at developing an
overall project work plan that will achieve maximum benefit for
the organization with minimal disruption of its work.
The onsite portion of a WOC effort should begin with work-
process mapping and a best-practices assessment, followed by a
detailed work sampling and data analysis (FIG. 2). Multiple tech-
niques can be employed to develop an accurate understanding
of current work practices and procedures that impact workload
and manpower.
Employee consideration. All too often, companies consider
only direct employees, but, throughout this process, the roles of
contract employees should be evaluated. Many companies re-
duce the number of direct employees only to replace them with
an equal or greater number of contract employees.
The concept of optimization does not always mean a simple re-
duction in staff: the solution may involve adding staff members to
certain department areas. For example, most leading-performance
facilities have higher levels of technical staffing than their poorer-
performing peers. The optimization process helps operators de-
termine the staffing levels and organizational structures that will
sustainably maximize workforce efficiency and effectiveness.
The methodology evaluates the organization and staffing lev-
els in the context of the business model. The success of the busi-
ness model (FIG. 3) is proportional to workforce competency and
organizational health.
The business objective defines how profit will be generated
4 (e.g., converting crude oil into light, premium products). High-
20 level work processes, such as operations and maintenance, are
31 a series of repetitive actions that must take place to accomplish
the business objective. The organizational structure defines how
52 employees will accomplish the work process. The roles and re-
sponsibilities within this structure must be well-defined, with
clear performance expectations for each position within the
58 organization. Practices and procedures tell what and how the
41
actions in the work process will be accomplished. How much
time it takes to perform the practices and procedures, and the ef-
ficiency with which they are performed, establish employee uti-
44
lization and, ultimately, the number of employees and employee
skills and knowledge required. Training is also an important ele-
22
28 ment in the business model because improvement in employee
knowledge and skills is heavily dependent upon instruction.
Operations Project Inspectors
engineer manager performance is continually improved. The measured results are
used to develop future business plans, including performance
improvement strategies, and to manage and maximize ongo-
 Management

ing business. A thorough understanding Continuous improvement cycle

of each element is necessary for effective
and sustainable workforce optimization. Business Work Organization
Practices/
Work process
Performance Improvement
WOC investigates and analyzes each of objectives processes structure
procedures
(best practices) evaluation
monitoring
and metrics
plan and
implementation
the business model elements, along with
workforce competency and organizational Process mapping Activity analyses
Workload work sampling
health, before developing recommenda- Roles and and
responsibilities
tions and an overall staffing plan. utilization
Workforce Organizational
competency health
Phased staffing level changes. To Roles and
Tools,
reach set goals and objectives, companies responsibilities
equipment
and software
must determine what drives their business
and develop an optimized business struc-
Staffing
ture. Accomplishing this task requires time level
and discipline, using a documented sched-
ule and plan. By adopting a methodology
Training
that measures current work processes and
workloads, and considers future work-
FIG. 3. The business model defines how work processes are accomplished and optimized.
loads, facilities can optimize both staffing
levels and work processes over time. The
phased changes in staffing levels are adjusted to meet the busi- and lived most of the recommendations and changes that they
ness environment and requirements of each company and its fa- recommend. As a result, their analysis goes far beyond numeri-
cilities, rather than applying a “cookie-cutter” approach. cal analysis and the basic tenets of a high-quality Master of Busi-
Typical time periods (tiers) for making staffing level changes ness Administration (MBA) degree.
include short-range staffing targets with associated business pro- High-performance benchmarks are always changing, so
cesses and practice changes that are within the authority level of downstream operators must constantly observe these changes
a facility’s management. These targets should be achievable in and work to adopt new philosophies and optimize work pro-
one year or less. Mid-range staffing-level targets requiring minor cesses to stay competitive.
changes to the overall business model typically require one to
three years and are often within the facility’s management au- A new way of thinking. Going beyond simple, quantitative
thority level. Longer-range targets demand staffing levels requir- formulas and across-the-board cuts, the data-driven and experi-
ing major changes to the company’s existing business model and ence-based approach takes all critical factors into account. The
possibly its organizational structure. The business changes to result is custom recommendations for reaching optimal staffing
reach this level of staffing may require three to five years to fully levels and organizational structure (which can mean staff reduc-
achieve. Such changes to the organization’s business model may tions and/or staff additions) based on specified goals, objec-
include streamlining existing corporate procedures to which tives and social standards for the business.
each site or division is required to adhere, or delegating higher Management is tasked with identifying and closing the gaps in
levels of authority to managers and/or supervisors. operational performance, and an expert consultant can provide:
Staffing targets for each customized time period are tabulated • Performance benchmarking to compare the company’s
for each functional area. In addition to staffing targets and overall personnel efficiency relative to peers
recommendations, an estimation of the total annual savings or fi- • Process mapping to evaluate actual work processes,
nancial impact in connection with the recommendations for each such as operator maintenance, routine maintenance,
set of staffing targets can be provided using WOC methodology. shift operations and procurement to identify
WOC can help companies that are both understaffed and opportunities for streamlining
overstaffed. Most often, the results are able to significantly mod- • Assessment of the facility’s current key work practices
ify staffing levels in the range of 10%–15%. However, reducing and identification of inefficiencies
employees and changing organizational structure is not always • Work sampling analysis to assess how employees in
the answer. WOC utilizes proprietary information and data from various work streams expend their efforts on necessary
large and mature industry performance databases as a valuable tasks, which assists in identifying obstructions to
tool in the identification of potential staffing optimization op- improving efficiency
portunities. Specifically, the databases allow comparisons using • Application of best professional judgment of seasoned
key performance indicators and actual staffing levels for peer industry professionals.
facilities in relation to the client facility. As a result, this unique There is no single, perfect organizational structure: many
analysis capability enables development of proven, achievable models are successful. WOC can be the key to achieving greater
and sustainable recommendations for a facility. efficiencies, enhanced reliability, improved margins and sus-
Equally important as data access capabilities is that the work- tainable performance.
force analysis and development of improvement recommenda-
tions are performed by personnel with an average experience BILL GLASSCOCK is vice president of consulting at Solomon Associates, which
provides benchmarking and performance improvement consulting services to
level greater than 30 years. These consultants have experienced energy-intensive industries.

Hydrocarbon Processing | JULY 201581

 Process Automation
T. MEEK, Thermo Fisher Scientific,
Philadelphia, Pennsylvania
Automate environmental monitoring
at petrochemical plants with LIMS
Environmental regulations can add to the cost of doing busi-
ness in the petrochemical industry, so making compliance more
efficient and less expensive is a bottom-line priority.
To fully understand the costs of compliance, upstream and
downstream processing plants must account for not only the
processes in place to meet compliance guidelines, but also for
managing the entire process of capturing, collating and report-
ing on instrument data that oversees each process. These ac-
tions are becoming even more important as new regulations
require continuous or near-continuous monitoring of a plant’s
environmental impact.
While tracking environmental footprints can be onerous,
there are nonetheless many opportunities to increase compli-
ance efficiency. Companies that plan for, and build in, compli-
ance early in their process definitions establish a best-practice
environment that sets the stage for easier conformance with
regulatory guidelines and more reliable reporting.
Uncovering efficiencies in any process is challenging. It de-
pends on rigorous data analysis that relies heavily on informat-
ics solutions. Finding efficiencies in a compliance process is
even more challenging, as it involves internal stakeholders who
must agree and adapt to workflows that are new and, in some
cases, disruptive. Achieving compliance efficiency is only pos-
sible with a solid management framework and a data-manage-
ment system to support it.
ISO 14000 and LIMS. A proven way to meet the compliance
efficiency challenge is to combine the environmental manage-
ment system (EMS) outlined in the ISO 14001 standard with a
laboratory information management system (LIMS). The EMS
gives plant management a useful framework for identifying
opportunities for increased environmental performance and
efficiency. For its part, the LIMS manages all monitoring data
produced around the plant and organizes it into templates for
analysis and regulatory reporting.
The core of an ISO 14001 EMS is a five-step environmen-
tal management process (FIG. 1) that helps plant management
set and achieve goals related to environmental monitoring. The
cyclical structure of the EMS encourages continuous improve-
ment; after evaluating progress toward goals set in the previous
cycle’s planning phase, management is immediately encouraged
to continue improving by setting new goals. The process is flex-
ible enough to allow plants to tackle nearly any process that in-
volves environmental regulations.
82JULY 2015 | HydrocarbonProcessing.com
The other half of the equation is the LIMS. Traditionally
used by laboratories to collect and manage product sample
data, LIMSs have evolved and expanded over the decades and
are managing environmental monitoring programs that require
scientific analysis to deliver actionable results.
Just as a LIMS can track the journey of a sample through a
lab, from receipt through sample testing and reporting, it can
now also monitor all of the environmental aspects of a given
process within a plant, including scheduling, location tracking
and automated compliance alerts.
These data, required by environmental and regulatory au-
thorities and built into the LIMS library of workflows and re-
porting, are then organized for easy review by management and
auditors. Together, the LIMS and the EMS give plant manage-
ment complete visibility into all five steps of the EMS process,
allowing them to reduce compliance costs by identifying op-
portunities for process efficiency based on measured results.
Step 1: Planning. The first step in establishing an EMS is to
catalog all plant operations that are potentially relevant to a
given regulation. This catalog is stored in the LIMS as a virtual
map of the plant, which management can use to identify envi-
ronmental risks within the process.
One application where the LIMS/EMS solution excels is
management of stack monitoring data. In most plants, data gen-
erated by continuous emissions monitoring systems (CEMSs)
in the stack are fed into a process information management
solution (PIMS) and/or data acquisition and handling system
(DAHS). Integrating these systems with the LIMS allows plants
to automatically generate reports from these data, simplifying
the compliance demonstration process.
Other applications of the LIMS/EMS solution include:
• Spillage-monitoring data
• Storage of spot sample data
• Recording of rainwater sulfur content measurements
• Mercury-monitoring data
• Historic cleanup statistics
• Effluent-monitoring data.
Step 2: Implementation. After the management team has
identified the processes it wants to improve, the next challenge
is rolling out these changes to the affected staff. This step is of-
ten where efficiency gains won in the other steps can be lost;
training employees on new processes is time-consuming, and

ensuring that they follow new procedures is even more difficult.
A LIMS solves this problem by fully automating the distri-
bution of standard operating procedures (SOPs) for use by rel-
evant staff. SOPs can walk staff through a new process step by
step, preventing costly human error. The LIMS can also store
employee competence records, which are a significant part of
compliance with many regulations.
A LIMS can also automatically alert staff to both process
and environmental errors. If an environmental parameter be-
ing monitored by the LIMS exceeds a limit defined in the EMS,
then the LIMS will automatically alert responsible staff and
provide them with an SOP to correct the error.
Step 3: Evaluation. Evaluation is the most data-intensive step
of the ISO 14001 EMS. All collected data must be regularly re-
viewed and measured against EMS and regulatory goals.
Here, the combined effect of the LIMS and EMS is most ob-
vious. Since the LIMS acts as a central repository for all plant
regulatory data, the development of EMS results for evaluation
is fully automated. Saving this small amount of staff time during
each evaluation adds up over hundreds of evaluations; efficien-
cy gains will ultimately contribute to significant cost savings.
Step 4: Management review. ISO 14001 EMS systems re-
quire plant management to review progress toward their Step
1 goals at the end of every monitoring period. While this may
sound tedious, it actually provides a critical opportunity for plant
management to encourage continuous process improvement.
Just as the LIMS can automate reporting to external regula-
tors, it can also generate comprehensive reports for the man-
agement team. These auto-generated reports make the man-
agement review much more efficient. If the efficiency and
regulatory goals for the previous period were met, management
can then use the report data to set new goals for the next period.
Step 5: (Re)commitment. At the end of each cycle, the plant
must report its results to both regulators and an auditing body
for ISO 14001 certification. The LIMS generates reports that
are tailored to the requirements of each auditor, which signifi-
cantly reduces the administrative work necessary for demon-
strating compliance.
Commitment
and policy
Review Continuous Planning
improvement
Evaluation Implementation
FIG. 1. The five-step EMS. Source: US Environmental Protection Agency.
Process Automation
Takeaway. Environmental compliance is part of doing busi-
ness, but plant operators have more control over costs than they
realize. By taking stock of all the costs of regulatory compliance,
it is possible to achieve measurable and repeatable savings.
Combining the data reporting required for an EMS-compli-
ant environment with the enterprise-level data reporting of a
LIMS, plants are able to lay out and analyze the entire process
of capturing, managing and reporting data related to environ-
mental compliance. This process may seem challenging at first,
but the LIMS is built precisely to enable this level of complex
and cross-platform data management.
The bottom-line costs of environmental compliance are not
fixed; there is opportunity to drive greater efficiencies into the
process and save money. However, data is the key to making all
the right decisions about where opportunities exist to imple-
ment improvements across the entire organization. All it takes
is a solid management framework and the right data manage-
ment system to support it.
TRISH MEEK is the director of product strategy at Thermo
Fisher Scientific and has been with the company since 1999. She
works closely with customers to understand their business
needs and long-term strategies to drive the Informatics product
roadmap and business strategy. Prior to this role, Ms. Meek
occupied various roles in the organization in product
management, sales and support. Prior to Thermo Fisher, she
performed heavy metal analyses of contaminated soil samples using X-ray
fluorescence and atomic absorption spectrometers. She has a BS degree in
chemistry from Loyola University in New Orleans, Louisiana.
The industry-standard software for instrumentation design
Featuring more than 70 routines associated with control valves, rupture
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InstruCalcTM is one of the industry’s most popular desktop applications for
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Features:
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Hydrocarbon Processing | JULY 201583
ADRIENNE BLUME, MANAGING EDITOR
Adrienne.Blume@HydrocarbonProcessing.com
Communication in
digitally networked
plant of the future
With the new HIPRO-S V2 safety
protocol, automation solutions firm
HIMA introduces a unique safety proto-
col for efficiently migrating existing plants
to digitally networked plants. The proto-
col enables Ethernet-based, safety-related
communication between three safety con-
troller families: HIMatrix, HIMax and HI-
Quad (FIG. 1).
Separate certification is not necessary, as
HIPRO-S V2 is a component of HIQuad,
HIMax and HIMatrix controllers and is
covered by their certificates. HIPRO-S V2
can be implemented universally.
Like safeethernet, developed by
HIMA in 1997, HIPRO-S V2 utilizes user
datagram protocol packets. These packets
can be transmitted via standard Ethernet
infrastructures, such as switches, firewalls,
WLANs or other devices that are suitable
for Ex zones. The use of these proven
industrial infrastructure components en-
ables economical and reliable solutions.
HIMA safety protocols can be oper-
ated in the same network with non-safe
protocols, e.g., Modbus TCP or the con-
nection via OPC. Controllers can also
be programmed via this network, which
helps reduce the costs of generating and
maintaining the network infrastructure.
Select 1 at www.HydrocarbonProcessing.com/RS
FIG. 1. HIPRO-S V2’s safety protocol enables
Ethernet-based communication between three
safety controller families.
84JULY 2015 | HydrocarbonProcessing.com
Catalyst discovery
for higher performance
Catalyst researchers at IFP Energies
nouvelles (IFPEN) have, for the first
time, uncovered a molecular recognition
phenomenon between cobalt-based cata-
lyst precursors and the alumina support
surface. This discovery paves the way for
catalyst improvements and has led to a
paper being published in the internation-
al edition of Angewandte Chemie.
In heterogeneous catalysis, the inter-
action between transition metal com-
plexes and oxide surfaces concerns the
preparation of supported metal catalysts.
Such catalysts include cobalt-based cata-
lysts supported on alumina, which are
used in numerous refining processes (hy-
drotreatment, Fischer-Tropsch synthesis,
etc.) and chemical processes (particu-
larly the conversion of molecules with a
single carbon atom).
On theoretical gamma-alumina
surface models, calculations based on
Density Functional Theory tend to
demonstrate that the metal precursor
coordination modes often invoked (co-
ordination at surface hydroxyls) do not
generate the octahedral cobalt species
observed experimentally. The most sta-
ble grafts are obtained by the additional
incorporation, in the metal coordination
sphere, of oxygen atoms from the alumi-
na network, resulting in a molecular rec-
ognition phenomenon (FIG. 2).
In their recent publication, the au-
thors propose a mechanism of epitactic
cobalt hydroxide layer growth with the
support, explain the multiple experi-
mental results and predict the geometry
FIG. 2. IFP Energies nouvelles uncovered a
molecular recognition phenomenon between
cobalt-based catalyst precursors and the
alumina support surface.
Innovations
of the grafting sites, along with the way
these layers will be oriented with respect
to the alumina support.
A passivation effect of the silica is also
demonstrated by the calculation of the
interaction of the same cobalt precursors
with amorphous silica-alumina surface
models developed at IFPEN. In fact, the
amorphous nature of the surface limits
the occurrences of the molecular recogni-
tion phenomenon.
These studies represent an advance-
ment in terms of the rationalization of
the interface phenomena involved in the
drying step of the preparation of hetero-
geneous catalysts, and pave the way for
future investigations during the liquid-
medium impregnation steps.
Select 2 at www.HydrocarbonProcessing.com/RS
Methaforming cuts cost
of high-octane gasoline
The New Gas Technologies–Synthesis
(NGTS) Methaforming process removes
sulfur and converts naphtha and metha-
nol into a high-octane gasoline blendstock
with low benzene, releasing hydrogen.
Methaforming uses a proprietary zeo-
lite catalyst in a process flow scheme that
is similar to naphtha hydrotreating. The
methanol is dehydrated in a highly exo-
thermic reaction, releasing the methyl
radical for alkylating benzene into tolu-
ene. As in reforming, the normal paraf-
fins and naphthenes are converted to
aromatics, releasing hydrogen in a highly
endothermic reaction. The methanol
is injected into the fixed-bed reactor in
stages to balance reaction temperature
and optimize the conversion (FIG. 3).
Unlike conventional reforming pro-
cesses, Methaforming can tolerate sulfur
content up to 500 ppm wt, reducing it by
90%. The presence of olefins and dienes
do not significantly affect catalyst life.
Catalyst activity is recovered by in-situ
regeneration. Typical cycle time between
regenerations is one month. For continu-
ous operation, two reactors and regenera-
tion facilities are needed.

This one-step process replaces naph-
tha desulfurization, reforming, isomeri-
zation and benzene removal, thereby re-
ducing costs to one third. For new plant
applications, the major benefit is cost,
both initial capital cost and ongoing op-
erating cost. For a 20-Mbpd unit, the sav-
ings total $240 MM net present value.
Methaforming yields and associated
octane are comparable to isomerization
with continuous catalyst regeneration re-
forming; both are significantly better than
semi-regenerative reforming. As a result,
Methaforming offers a low-cost approach
to improve yields and to debottleneck gas-
oline production for existing semi-regen-
erative reformers. This yield advantage is
worth $80 MM/yr, at a retrofit cost of ap-
proximately $15 MM. The retrofit is done
at the associated naphtha hydrotreater,
with the major cost being the replacement
of the existing reactor with two larger ones.
Five years of pilot plant processing
have demonstrated performance on full-
range naphtha, LPG, natural gasoline and
pyrolysis gasoline in three pilot plants.
NGTS’ next step is to locate an existing
idle naphtha hydrotreater or reformer for
a low-cost conversion into a Methaform-
ing commercial demonstration plant.
Select 3 at www.HydrocarbonProcessing.com/RS
SRU analyzer wins
innovation award
The analysis division of the Interna-
tional Society of Automation (ISA) se-
lected AMETEK Process Instruments
to receive the Innovative Product of the
Year award at the 2015 ISA Analysis Di-
vision Symposium, held this past April in
Galveston, Texas.
AMETEK was chosen over 12 other
entrants for its Model 888 sulfur recovery
unit (SRU) tail gas analyzer (FIG. 4). The
third-generation analyzer represents ad-
vancement in the control of the Claus sul-
fur recovery process. It addresses the three
most common external failure modes en-
countered by SRUs and incorporates the
following features to deal with them:
• Automatic flow control for a
proactive response to adverse
process conditions, such as
reducing entrainment during
SRU turndown
• Flange temperature alarm to give
early warning of bad steam quality
or a defunct steam trap
Innovations
• An extended ambient temperature and produce ultra-high-purity hydrogen
range to 60°C, without external (99.999+%) at 200 psi (13.8 bar), reduc-
cooling, that increases the life ing the need for product compression
of electronics. in most uses. The new product line has
In addition, the Model 888 features a a high natural gas conversion rate and is
full-color, web-enabled user interface and highly heat integrated, which translates
smart diagnostics. The unit’s self-diagnos- into low operating cost.
tics monitor six temperature zones and HYDROPRIME plants are fully auto-
automatically adjust to changes in four matic with failsafe controls, allowing for
pressures. It is also equipped with anti- unattended operation and remote startup,
clogging blowback features that initiate operation and monitoring. In addition,
automatically if plugging is detected. they feature a modular open-skid design
The analyzer mounts directly on the and a small footprint.
process pipe without an external sample Recognizing the diverse needs of a
line, eliminating the complexity of fiber- global marketplace, Linde offers HY-
optic-coupled photometers. In addition, DROPRIME as a build-own-operate so-
the Model 888 occupies the same foot- lution to simplify ownership and main-
print and uses the same connections as tenance for the end user and eliminate
its predecessor, enabling a new unit to be customer-owned capital investment. Al-
substituted in less than a day. ternatively, HYDROPRIME plants can
Select 4 at www.HydrocarbonProcessing.com/RS be owned and operated by the end user
with various support models by Linde.
Compact hydrogen Select 5 at www.HydrocarbonProcessing.com/RS
generator line launched
The Linde Group has launched its
new HYDROPRIME plant line of inno-
vative, cost-effective hydrogen generators
(FIG. 5), which are based on proven steam
methane reforming technology.
Hydro-Chem, a division of Linde En-
gineering North America, has tested and
proven the reliability and suitability of
these units in various applications. The
company is now launching the mass-pro-
duction release of HYDROPRIME as a
local production alternative to trucked-in
bulk gases.
HYDROPRIME plants offer many ad-
vantages over traditional supply modes,
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methane reforming plants. These plants received a top innovation award in April.
have a capacity of 0.15 MMscfd to 0.9
MMscfd (165 Nm3/h to 1,000 Nm3/h)
H2, H2S
C1-C4
Naphtha
( 35 180°C)
Methaforming
Stabilizer
Gasoline
Methanol unit 10 atm blendstock
(25%) 370°C High octane
10-30 ppm sulfur
<1.3% benzene
Water
FIG. 3. Methaforming uses a proprietary FIG. 5. HYDROPRIME hydrogen generators are
zeolite catalyst in a process flow scheme that based on proven steam methane reforming
is similar to naphtha hydrotreating. technology.
Hydrocarbon Processing | JULY 201585
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Hydrocarbon Processing | JULY 201587

ADVERTISER INDEX / HydrocarbonProcessing.com
The first number after the company name is the page on which an advertisement appears. The second number is the Reader Service Number. There are two ways readers can obtain product and service information:
go to www.HydrocarbonProcessing.com/RS, follow the instructions on the screen, and your request will be forwarded for immediate action, or go online to the advertiser's website listed below.

Company Page RS# Company Page RS# Company Page RS#

Website Website Website

American Petroleum Institute ................... 61 (159) Flexitallic LP ..............................................5 (93) Maire Tecnimont SpA ................................53 (156)
www.info.hotims.com/56798-159 www.info.hotims.com/56798-93 www.info.hotims.com/56798-156
Axens ......................................................92 (51) Gastech ................................................... 91 Merichem Company..................................75 (84)
www.info.hotims.com/56798-51 Gulf Publishing Company www.info.hotims.com/56798-84
BARTEC BENKE GmbH ................................. 4 (151) Construction Boxscore Database.............67 Paharpur Cooling Towers, Ltd. ...................26 (99)
www.info.hotims.com/56798-151 www.info.hotims.com/56798-99
Events—ECF ..........................................77
BASF Corporation .....................................22 (79) Pentair .................................................... 14 (152)
Events—GasPro................................... 6-7
www.info.hotims.com/56798-79 www.info.hotims.com/56798-152
Events—GTL..................................... 30-31
Burckhardt Compression AG ...................... 18 (97) Pittsburgh Corning Corporation.................55 (157)
Events—WGLC .......................................68
www.info.hotims.com/56798-97 www.info.hotims.com/56798-157
Software ..............................................83
Clariant ................................................... 15 (153) Rentech Boiler System ................................2 (52)
www.info.hotims.com/56798-153 Marketplace.....................................86-87 www.info.hotims.com/56798-52
Criterion Catalyst & Technologies............... 71 (69) US Gas Processing Plant Directory...........36 Saint-Gobain Norpro ................................ 13 (91)
www.info.hotims.com/56798-69 Gulftronic ................................................65 (161) www.info.hotims.com/56798-91
Curtiss Wright ..........................................24 (154) www.info.hotims.com/56798-161 Sherwin Williams .....................................37 (88)
www.info.hotims.com/56798-154 Hunter Buildings ......................................38 (77) www.info.hotims.com/56798-88
Dyna-Therm ............................................47 (155) www.info.hotims.com/56798-77 Sinopec Catalyst Co., Ltd ............................ 8 (55)
www.info.hotims.com/56798-155 Koch - Glitsch ..........................................63 (160) www.info.hotims.com/56798-55
Emerson Process Management ..................28 www.info.hotims.com/56798-160 Spectrum Analytics .................................. 16 (71)
Finder Pompe SpA....................................58 (158) Linde Engineering North America .............. 51 (90) www.info.hotims.com/56798-71
www.info.hotims.com/56798-158 www.info.hotims.com/56798-90 UOP LLC ...................................................20
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.

SALES OFFICES—EUROPE CHINA—Hong Kong

FRANCE, GREECE, NORTH AFRICA, Iris Yuen
MIDDLE EAST, SPAIN, PORTUGAL, Phone: +86 13802701367 (China)
Phone: +852 69185500 (Hong Kong)
SOUTHERN BELGIUM, LUXEMBOURG,
E-mail: Iris.Yuen@GulfPub.com
Bret Ronk, Publisher SWITZERLAND, GERMANY, AUSTRIA, TURKEY
Phone/Fax: +1 (713) 520-4421 Catherine Watkins BRAZIL—São Paulo
E-mail: Bret.Ronk@GulfPub.com Phone: +33 (0) 1 30 47 92 51 Alfred Bilyk
www.HydrocarbonProcessing.com Fax: +33 (0) 1 30 47 92 40 Phone/Fax: 11 23 37 42 40
E-mail: Watkins@GulfPub.com Mobile: 11 85 86 52 59
SALES OFFICES—NORTH AMERICA
Jim Watkins E-mail: Brazil@GulfPub.com
IL, LA, MO, OK, TX Phone: +33 (0) 1 30 47 92 51
Josh Mayer INDIA
Fax: +33 (0) 1 30 47 92 40 Manav Kanwar
Phone: +1 (972) 816-6745, Fax: +1 (972) 767-4442 Cell: +33 (0) 6 76 35 11 52
E-mail: Josh.Mayer@GulfPub.com Phone: +91-22-2837 7070/71/72, Fax: +91-22-2822 2803
Jim.Watkins@GulfPub.com Mobile: +91-98673 67374
AK, AL, AR, AZ, CA, CO, FL, GA, HI, IA, ID, IN, KS, ITALY, EASTERN EUROPE E-mail: India@GulfPub.com
KY, MI, MN, MS, MT, ND, NE, NM, NV, OR, SD, TN, Fabio Potestá INDONESIA, MALAYSIA, SINGAPORE, THAILAND
TX, UT, WA, WI, WY, WESTERN CANADA Mediapoint & Communications SRL Peggy Thay
Ryan Akbar Phone: +39 (010) 570-4948 Publicitas Singapore Pte Ltd
Phone/Fax: +1 (713) 520-4449 Fax: +39 (010) 553-0088 Phone: +65 6836-2272, Fax: +65 6634-5231
Mobile: +1 (832) 691-6053 E-mail: Fabio.Potesta@GulfPub.com E-mail: Singapore@GulfPub.com
E-mail: Ryan.Akbar@GulfPub.com
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CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH, PA, Lilia Fedotova
Yoshinori Ikeda
RI, SC, VA, VT, WV, EASTERN CANADA Anik International & Co. Ltd.
Pacific Business Inc.
Merrie Lynch Phone: +7 (495) 628-10-333
Phone: +81 (3) 3661-6138, Fax: +81 (3) 3661-6139
Phone: +1 (617) 357-8190, Fax: +1 (617) 357-8194 E-mail: Lilia.Fedotova@GulfPub.com
E-mail: Japan@GulfPub.com
Mobile: +1 (617) 594-4943 UNITED KINGDOM/SCANDINAVIA,
E-mail: Merrie.Lynch@GulfPub.com KOREA
NORTHERN BELGIUM, THE NETHERLANDS
Michael Brown Young-Seoh Chinn
CLASSIFIED SALES JES Media, Inc.
Phone: +44 161 440 0854
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Mobile: +44 79866 34646
Phone: +1 (972) 816-3534, Fax: +1 (972) 767-4442 E-mail: Korea@GulfPub.com
E-mail: Michael.Brown@GulfPub.com
E-mail: Gerry.Mayer@GulfPub.com
SALES OFFICES—OTHER AREAS REPRINTS
DATA PRODUCTS Rhonda Brown, Foster Printing Service
AUSTRALIA—Perth
Lee Nichols Phone: +1 (866) 879-9144 ext. 194
Bret Ronk
Phone/Fax: +1 (713) 525-4626 E-mail: RhondaB@FosterPrinting.com
Phone/Fax: +1 (713) 520-4421
E-mail: Lee.Nichols@GulfPub.com
E-mail: Bret.Ronk@GulfPub.com

88JULY 2015 | HydrocarbonProcessing.com
HELEN MECHE, ASSOCIATE EDITOR
Helen.Meche@HydrocarbonProcessing.com
JULY
Valve World Americas Expo
& Conference 2015, Jul. 15–16,
George R. Brown Convention
Center, Houston, Texas
P: +1 (312) 621-5816
info@mdna.com
www.valveworldexpo
americas.com
ASME Pressure Vessels and
Piping Conference, Jul. 19–23,
Boston Park Plaza, Boston, Mass.
(See box for contact information)
GTL Technology Forum 2015,
Gulf Publishing Company Events,
Jul. 29–30, Norris Conference
Centers—CityCentre,
Houston, Texas
GTLTechForum.com
(See box for contact information)
AUGUST
AIChE 60th Annual Safety
in Ammonia Plants and
Related Facilities Symposium,
Aug. 30–Sep. 3, Boston, Mass.
(See box for contact information)
National Association of Corrosion
Engineers (NACE), Central
Area Conference,
Aug. 31–Sep. 2, St. Louis, Mo.
P: +1 (281) 228-6223
firstservice@nace.org
www.nace.org
SEPTEMBER
EUROCORR 2015—
European Corrosion Congress,
Sep. 6–10, Stadthalle,
Graz, Austria
P: +43 (0) 3842 402 2290
eurocorr2015@asmet
eurocorr2015.org
GasPro Americas (GasPro),
Gulf Publishing Company Events,
Sep. 9–11, Hyatt Regency
Houston, Houston, Texas
GasProcessingConference.com
(See box for contact information)
LNG Americas Conference,
Gulf Publishing Company Events,
Sep. 9–11, Hyatt Regency
Houston, Houston, Texas
LNGAmericasConference.com
(See box for contact information)
Engineering and Construction
Contracting (ECC) Association
Conference, Sep. 9–12,
JW Marriott Hill Country Resort,
San Antonio, Texas
P: +1 (713) 337-1600
board@ecc-association.org
www.ecc-conference.org
Texas A&M 44th Turbomachinery
& 31st Pump Symposia,
Sep. 14–17, George R. Brown
Convention Center, Houston, Texas
P: +1 (979) 845-7417
info@turbo-lab.tamu.edu
pumpturbo.tamu.edu
North American Pipeline
Congress, dmg events,
Sep. 22–23, The Westin Chicago
River North, Chicago, Ill.
P: +1 (403) 209-3555
mallorymcnab@dmgevents.com
pipelinecongress.com
OCTOBER
Gas Machinery Research
Council (GMRC) Gas Machinery
Conference, Oct. 4–7, Hilton Hotel
and Austin Convention Center,
Austin, Texas
P: +1 (972) 620-4026
admin@gmrc.org
www.gmrc.org
Canadian Society for Chemical
Engineering (CSChE) 65th
Canadian Chemical Engineering
Conference, Oct. 4–7, Calgary
Telus Convention Centre,
Calgary, Alta., Canada
P: +1 (613) 232-6252
info@cheminst.ca
csche2015.ca
AFPM Q&A and Technical Forum,
Oct. 5–7, New Orleans Marriott,
New Orleans, La.
(See box for contact information)
Gas Technology Institute (GTI)
CH4 Connections 2015, Oct. 6–7,
Lone Star Community Building,
The Woodlands, Texas
P: +1 (847) 768-0500
publicrelations@gastechnology.org
www.gastechnology.org
The 2015 API Tanks, Valves,
and Piping Conference &
Expo, Oct. 12–15, Aria Hotel,
Las Vegas, Nev.
(See box for contact information)
AFPM Environmental Conference,
Oct. 18–20, Grand America,
Salt Lake City, Utah
(See box for contact information)
API 2015 Fall Committee
on Petroleum Measurement
Standards Meeting, Oct. 19–23,
Westin Buckhead, Atlanta, Ga.
(See box for contact information)
Gas Technology Institute (GTI)
The Shale Exchange,
Oct. 20–22, Pittsburgh, Pa.
P: +1 (847) 768-0500
publicrelations@
gastechnology.org
www.gastechnology.org
Women’s Global Leadership
Conference (WGLC)
in Energy, Gulf Publishing
Company Events,
Oct. 27–28, Hyatt Regency
Houston, Houston, Texas
www.WGLConference.com
(See box for contact information)
Gastech Conference & Exhibition,
dmg events, Oct. 27–30,
Singapore EXPO, Singapore
P: +44 (0) 203 615-2847
info@gastech.com
www.gastechsingapore.com
NOVEMBER
AIChE 2015 Global Summit
on Process Safety, Nov. 3–5,
Kuala Lumpur, Malaysia
(See box for contact information)
Chemical Institute of Canada
(CIC) Industrial Chemisty
and Engineering
Conference 2015, Nov. 3–5,
Toronto, Ont., Canada
P: +1 (613) 232-6252
info@cheminst.ca
www.cheminst.ca
Latin American Petrochemical
and Chemical Association
(APLA), 35th Latin American
Petrochemical Annual Meeting,
Nov. 7–10, Cancun, Mexico
P: 54-11-4325-1422
info@apla.com.ar
apla.com.ar/en/
2015 AIChE Annual Meeting,
Nov. 8–13, Salt Palace Convention
Center, Salt Lake City, Utah
(See box for contact information)
Hydrocarbon Processing | JULY 201589
Events
10th Annual API Cybersecurity
Conference & Expo, Nov. 10–11,
Westin Houston Memorial City,
Houston, Texas
(See box for contact information)
ASME 2015 International
Mechanical Engineering Congress
and Exposition (IMECE),
Nov. 13–19, Hilton of the Americas
and George R. Brown Convention
Center, Houston Texas
(See box for contact information)
API 2015 Fall Refining and
Equipment Standards Meeting,
Nov. 16–19, Long Beach
Convention Center, Long Beach,
Calif.
(See box for contact information)
European Autumn Gas
Conference (EAGC), dmg events,
Nov. 17–19, InterContinental
Geneva, Switzerland
P: +44 (0) 203 772 6038
damianhoward@dmgevents.com
www.theeagc.com
Hydrocarbon Processing/
Gulf Publishing Company
Events
P: +1 (713) 520-4475
F: +1 (713) 520-4433
Melissa.Smith@GulfPub.com
EnergyEvents@GulfPub.com
American Fuel &
Petrochemical Manufacturers
(AFPM)
P: +1 (202) 457-0480
meetings@afpm.org
www.afpm.org/Conferences
American Institute of
Chemical Engineers (AIChE)
P: +1 (203) 702-7660
customerservice@aiche.org
www.aiche.org
American Petroleum
Institute (API)
P: +1 (202) 682-8195
registrar@api.org
www.api.org
American Society of
Mechanical Engineers (ASME)
P: +1 (973) 882-1170
customercare@asme.org
www.asme.org
MIKE RHODES, TECHNICAL EDITOR
Mike.Rhodes@HydrocarbonProcessing.com

People

Yokogawa Corp. of William C. Bodie has
America has named rejoined Parsons as
Daniel L. Duncan as executive VP of its
president and CEO Middle East Africa (MEA)
of Yokogawa’s North region. Prior to rejoining
American operations. Parsons, Mr. Bodie was
Mr. Duncan most recently a senior VP with an
served as VP and general engineering, procurement
manager of the Oil & Gas and construction (EPC),
division of Siemens Energy maintenance and project
Inc. Chet Mroz, former management company,
president and and he has been working
CEO of Yokogawa Corp. in the MEA region for
of America, has more than 60 years.
transitioned into the role
of executive advisor for
strategy and innovation. The board of directors
of DNV GL Group
has appointed Remi
Shareholders of Eriksen, who has led the
ExxonMobil Corp. have company’s operations
elected Doug Oberhelman in Asia, Europe and the
to the company’s board of Americas, as the new
directors. Mr. Oberhelman president and CEO. He is
is chairman of the board succeeding Dr. Henrik O.
of directors and CEO Madsen, who is retiring
of Caterpillar Inc. in August. Dr. Madsen has
been appointed as a new
board member to the UN
The Institute for Energy Global Compact board, the
Research (IER) announced world’s largest voluntary
that Charles T. Drevna is corporate sustainability
joining the organization initiative, by UN Secretary-
as a distinguished senior General Ban Ki-moon.
fellow and will advise IER
on a variety of energy
topics, particularly fuel Earl “Chip” Mitchell
and refining issues. Most has joined CH2M as
recently, Mr. Drevna president of the firm’s
served as president Oil, Gas and Chemicals
of the American Fuel business group. Mr.
& Petrochemical Mitchell will be responsible
Manufacturers (AFPM). for overall operations,
project delivery and
profitability for the
Global engineering, group, which provides
procurement and project and operations
construction management services that span the
(EPCM) company entire energy value chain,
Audubon Engineering including upstream and
Solutions has named Ryan midstream oil and gas,
Lovell as its new director refining, chemicals and
of business development petrochemicals, pipelines
for the Offshore division. and terminals.
Wayne T. Smith is the
new chairman and CEO
of BASF Corp., succeeding
Hans Engel, CFO of BASF
SE, who will relocate to
the company’s global
headquarters in Germany
and assume additional
responsibilities on BASF’s
board of executive
directors. Mr. Smith began
his career at BASF in
2004 as group VP for the
Regional Intermediates
business unit in the US,
and will also have global
responsibility for the
Catalysts, Coatings
and Performance
Materials divisions.
Hannah Sesay has been
named as Amec Foster
Wheeler’s new global head
of health, safety, security
and environment (HSSE).
Ms. Sesay will also fulfill the
role of senior VP of HSSE
for the Americas, and she
will be based in Houston,
Texas. The company has
also appointed Steve
Raymond as human
resources (HR) director,
Process and Systems.
Flow-Cal Inc. announced
that its president and
CEO, Mike Squyres, is
the recipient of the 2015
Laurance S. Reid Award
from the International
School of Hydrocarbon
Measurement (ISHM).
Mr. Squyres serves as
an instructor for the
American School of
Gas Measurement and
Technology (ASGMT),
ISHM and many other
industry-related schools
and short courses.
LyondellBasell has Linde Engineering’s board
selected Daniel M. of directors has appointed
Coombs to become Joerg Linsenmaier as
executive VP of president and CEO of
intermediates and Linde Engineering North
derivatives, with America Inc. (LENA).
additional responsibility Mr. Linsenmaier has
for supply chain, most recently held the
procurement and position of executive
technology. Mr. Coombs VP for central project
replaces Pat Quarles, execution at Linde. He
who is taking a leadership will continue as executive
position at a US company. sponsor of several large
engineering, procurement
and construction (EPC)
Safety management projects currently in
company HazTek has execution in the US.
tapped Charles “C. J.”
Beysselance as operations
manager for its new Atlas Copco has named
Gulf Coast regional office Matt Cadnum as VP of
in Houston, Texas. Prior sales for its rental channel.
to joining HazTek, Cadnum, formerly Atlas
Mr. Beysselance was Copco Construction
director of health, safety Equipment’s aftermarket
and environment (HSE) VP, is also responsible
for Jacobs Engineering in for leading the current
both its Mining & Minerals rental service team
Americas and Heavy and providing support
Process divisions. for rental centers. The
company has also added
Matt Franzel as its
North American chemical new product manager,
company KMCO LLC has overseeing its breadth
appointed John C. Foley of hydraulic attachments,
to be president and CEO. including bucket crushers,
Mr. Foley joins KMCO breakers, cutters,
after a 26-year career at grapples, magnets
Solvay, most recently as and pulverizers.
VP and general manager
of Solvay’s Novecare
North America business. Baldor Electric Co., a
member of the ABB
Group, recently named
Jacobs Engineering Chris Keyser as VP of its
Group Inc. has elected Channel Management
Dawne S. Hickton, and Industry/Packaged
president and CEO of Solutions. Mr. Keyser
RTI International Metals will be responsible
Inc., to its board of for developing and
directors. Ms. Hickton leading Baldor’s channel
also served as a public management strategies
company director of FNB and initiatives for both
Corp. from 2006–2013. distributors and OEMs.

90JULY 2015 | HydrocarbonProcessing.com
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ground. At a cost of $10–$20 billion, depending on the
scope and the size of the refinery, and with gross refinery
margins being viewed as poor to average at best, such a
project is likely to be out of reach for most investors. In fact,
in many cases, the project cost escalates further with the
need to integrate with petrochemicals production.
Refiners can often achieve better payback with less risk by
improving or upgrading their existing assets. That is why, in
this supplement, we are focusing on revamping and upgrading
opportunities. The business case for such projects, which will
typically cost $100–500 million, is usually far more compelling.
2 www.shell.com/globalsolutions
The cost per tonne of the capacity installed during a revamp
is about 20–50% of that for a grass-roots facility. The extreme
range reflects the flexibility a refinery has in a revamp project.
A feasibility study for a revamp project can identify costs with a
greater degree of certainty, thereby enabling a refiner to make
easier decisions on how much scope to take on in a project. In
addition, there is the gestation period to consider; a revamp
will deliver returns far quicker than a grass-roots project.
Smaller, incremental investments can be extremely suitable in
today’s market and revamps are key elements of many of our
customers’ investment strategies. They carry a smaller investment
risk, generate credibility with investors and, as many of our case
studies demonstrate, provide the ability to respond flexibly to
differing situations as market conditions change.
At Shell Global Solutions, we have always advised customers
not to overlook their existing assets. Operational excellence
should be your first consideration. Then, you should generate
as much value as possible from your existing assets through
revamps, for example. These can provide big gains for a
relatively modest investment and the returns can help to fund
any larger capital projects that you may require. This is the
basis of the Shell Global Solutions Multiplatform Pentagon
model (see Figure 1).
 SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®

Shell Global Solutions’ revamp projects are, by definition, low
in capital expenditure. We seek to reuse existing equipment
and find synergies with the conversion units already on the
ground. We try to minimise major equipment; the kit that
needs to be acquired is usually limited to items that have a
modest capital cost such as new reactor internals, heat
exchangers and small furnaces (for a more detailed list of
actions that are typically taken in a revamp, see Technology
focus, page 7).
Fortunately, these issues can be mitigated by working with
an experienced strategic licensor that has experience of
delivering such projects internally and externally. Shell Global
Solutions has delivered a wide variety of value-adding
revamping and upgrading projects around the world, some of
which are described in more detail in the pages that follow.

However, revamp projects are also more complex in the

implementation phase than grass-roots initiatives. The project
planners have to ensure that they do not disrupt the continuing
operation of the existing facility. They have to design within
Süleyman Özmen
the existing units’ precise boundary conditions, such as the Vice President, Refining and
size and duty of the existing reactors, and the tie-ins during Chemical Licensing
project execution have to be carefully planned. Süleyman Özmen Shell Global Solutions International BV

SHORT TERM SHORT TO MEDIUM TERM LONG TERM

JUST SURVIVING SURVIVE/STARTING TO THRIVE THRIVE

Figure 1: The Shell Global Solutions

Pentagon Model. Pentagon I advocates a
focus on operational improvements that
do not require capital expenditure. These
OPERATIONAL SHORT-TERM PHASED are short-term initiatives and can help to
IMPROVEMENTS REVAMP INVESTMENTS fund Pentagon II initiatives, which are
SOLUTIONS OVER THE short-to-medium-term revamp solutions.
LONG TERM In turn, the cash generated from those
initiatives can be used for the more
capital-intensive projects of Pentagon III.
Each of the three pentagons has
investment options on all five sides.
W

Health, safety and environmental issues are of great importance to

Shell Global Solutions and thus central to all Pentagon options.

www.shell.com/globalsolutions 3
 MOVING THE OPERATING WINDOW
W

ABOUT US

Q Shell Global Solutions can undertake the full range of

revamp projects, which it generally designs for shorter
delivery and payback periods.
Q A dedicated, highly experienced team manages
our revamp projects and draws on the years of experience
that Shell has gained in revamping and operating
refineries and petrochemical complexes around the world.
Q When revamping hydrocrackers and hydrotreaters, Shell
Global Solutions offers proprietary state-of-the-art reactor
internals and works with two of Shell’s catalyst companies,
Criterion Catalysts & Technologies (Criterion) and CRI
Catalyst Company.
Q Shell Global Solutions licenses a wide range of industry-
leading technologies across all refinery processes, from
distillation and separation, through hydrocracking and
hydrotreating (including for dewaxing, lubricant base oil and
enhanced aromatic saturation) to technologies for treating
sour gas such as the CANSOLV* SO2 Scrubbing System.
Q The alliance of Shell Global Solutions with KBR enables
both companies to offer a broad range of refining
technologies aimed at helping customers to unlock margin
improvements while meeting their environmental
mandates. This covers hydrocracking, hydrotreating,
deep-flash, high-vacuum technology and bottom-of-the-
barrel upgrading.

*CANSOLV is a Shell trademark.

SELECTED REFERENCES
REVAMP TYPE CUSTOMER
Increase hydrocracker conversion for increased middle Q Grupa LOTOS’s Gdańsk refinery, Poland
distillates yield
Reduce hydrocracker conversion for base oil production Q Hyundai Oilbank’s Daesan refinery, South Korea
Maintain hydrocracker conversion; increase middle Q Valero’s St Charles refinery, USA
distillates capacity Q Valero’s Louisiana refinery, USA
Q Marathon’s Garyville refinery, USA
Q PREEM AB’s Preemraff Lysekil refinery, Sweden

Increase hydrotreater middle distillates yield Q TAIF-NK’s Nizhnekamsk refinery, Russia

From full conversion to partial conversion for ethylene
cracker feed
Convert diesel hydrotreater to mild hydrocracker for
increased middle distillates capacity
Add distillate dewaxing to produce winter diesel
Q Shell Deer Park Refining Ltd’s Deer Park refinery, USA
Q OJSC Naftan’s Novopolotsk refinery, Belarus
Q S-Oil Corporation’s Onsan refinery, South Korea
Q Gazprom Neft’s Omsk refinery, Russia

4 www.shell.com/globalsolutions

DESIGNING A REVAMP TO MEET YOUR SPECIFIC BUSINESS DRIVERS:
SEVEN SCENARIOS
A review of more than half a dozen recent revamp projects demonstrates that they are driven
by a broad range of business objectives, some of which are described below.
SCENARIO A: INCREASING CONVERSION TO
INCREASE MIDDLE DISTILLATES YIELD
Maximising the middle distillates yield is a goal many
refineries worldwide share. Many, though, cannot
increase their hydrocracker feed rate, so they will likely
look at improving the conversion instead.
That was the situation for the Grupa LOTOS refinery in
Gdańsk, Poland. In its first cycle, the refinery increased
the conversion rate of its hydrocracker from 60 to 85%
to produce more jet fuel and Euro 5 diesel. In this case,
there was much more value in converting the bottoms
to distillates than in selling it as feed to a fluidised
catalytic cracking unit.
SCENARIO B: REDUCING CONVERSION TO
EXPLOIT HIGH LUBRICANT BASE OIL MARGINS
Although middle distillates often provide a higher-value
product stream, the economics in some regions are
better for lubricant base oils. So, while Grupa LOTOS
was revamping to increase conversion, Hyundai
Oilbank was revamping the hydrocracker at its Daesan
facility in South Korea to reduce it. The plant had
originally been designed and started up at full 98%
conversion. It subsequently reduced the conversion to
70% and sold the bottoms product as base oil feed.
However, the margins that it was recouping on its own
lubricant base oils business prompted Hyundai Oilbank
to reduce this further to 50% to accommodate the shift
from middle distillate production to its own new base oil
plant (see page 10).
In China, CNOOC realigned routing of the hydrocarbon
streams at its refinery in Guangzhou Province to take
advantage of the premium on base oils. In this case,
the operator was switching away from petrochemical
products. Shell Global Solutions had originally installed
an 80,000-bbl/d, dual-service hydrocracker at 85%
conversion where the bottoms were running to the
ethylene cracker at the Nanhai petrochemicals complex.
Now, the bottoms are routed to the base oils plant
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PROCESSING®
across the fence because there were better margins in
base oils than in chemicals. A key enabler to this was
the high quality of the hydrowax that comes from the
Shell hydrocracker.
SCENARIO C: PROVIDING ADDITIONAL
PETROCHEMICAL FEEDSTOCKS
Like CNOOC’s Guangzhou refinery, many other
refineries are also integrated with a neighbouring
petrochemical facility. One Shell refinery had a
98%-conversion, two-stage diesel hydrocracker, but
management commissioned a revamp to respond to the
enhanced petrochemical margin. It is now running at
twice the capacity and a lower percentage conversion
to make ethylene cracker feedstock (see page 13).
SCENARIO D: MAINTAINING CONVERSION;
ADDING MIDDLE DISTILLATES CAPACITY
In the previous scenarios, the refiners were adjusting
the conversion of their hydrocrackers but, of course,
other parameters can be tuned instead. For example,
Valero, North America’s largest refiner, originally built
a 50,000-bbl/d, two-stage hydrocracker at each of its
refineries in St Charles, Louisiana, and Port Arthur,
Texas. Subsequently, it has revamped both of them to
increase capacity towards 75,000 bbl/d to benefit
further from the booming market for distillate products.
Marathon Oil Corporation has responded in a similar
way. It revamped the hydrocracker at its Garyville
refinery in Louisiana, to increase its capacity from
77,000 to 115,000 bbl/d. Marathon Oil maintained
the same conversion level (80–85%) but increased the
feed rate to generate more barrels of jet and diesel.
Both of these expansion projects solved their hydraulic
and heat balance constraints through cost-effective,
low-cost revamps involving replacing the heat
exchangers, small heaters and pumps.
W
www.shell.com/globalsolutions 5
MOVING THE OPERATING WINDOW

SCENARIO E: INCREASING MIDDLE DISTILLATES

W

CAPACITY BY CONVERTING A MILD

HYDROCRACKER
To increase capacity at minimum capital cost, reusing
redundant equipment can often be a highly effective
response. For instance, OJSC Naftan’s Novopolotsk
refinery in Belarus added an available reactor to one
of its hydrotreating units and, with the increased catalyst
volume, raised the conversion, thus creating a mild
hydrocracker. Shell’s state-of-the-art reactor internals were
added to both reactors with new-generation pretreatment
and cracking catalysts from Criterion. The revamped unit
was able to achieve up to 60% conversion of the
370°C-plus heavy atmospheric gas oil and light vacuum
gas oil fractions.

SCENARIO F: COST-EFFECTIVELY RESPONDING TO

MARKET DEMAND FOR WINTER DIESEL
Many refiners are keen to produce winter diesel that
has specific cold-flow properties, as it can attract a price
premium. This can be achieved in several ways, but the
economics can vary substantially. A revamping project
that involves the installation of catalytic dewaxing
capability can often provide a better economic return
than additivation or kerosene blending, for example.
That was certainly the case at the Gazprom Neft refinery
in Omsk, Russia. Reusing a redundant reactor as a
second-stage dewaxing reactor enabled it to produce
higher-quality winter and extreme-winter-grade diesel
fuels at minimum capital cost and with minimum changes
to the process configuration.

SCENARIO G: ADAPTING TO PROCESS HEAVIER KEY TAKEAWAY

FEEDS WITHOUT COMPROMISING ON CYCLE
LENGTHS
Many refiners are having to run heavier feeds such
as heavy coker gas oil, heavy vacuum gas oil and
deasphalted oil. This is due to the industry trend for
increased fuel oil conversion and processing crudes
with higher portions of 370°C-plus fractions. However
this can lead to operational problems such as fouling that
can curtail cycle lengths. Nevertheless, S-Oil was able to
avoid such problems at its Onsan refinery in Ulsan, South
Korea by adding Shell’s state-of-the-art reactor internals to
both reactors, along with new-generation pretreatment and
cracking catalysts from Criterion.
These examples demonstrate that every revamp project is
unique and should be carefully tailored towards a refiner’s
specific situation. Should you process heavier feeds? Should
you increase conversion or reduce it? Could you improve the
yield of middle distillates, petrochemicals or lubricant base
oils? The answer will depend on your business objectives,
assets and the dynamics of the markets you serve. Moreover,
your margin drivers are likely to change over time.
John Baric
Licensing Technology Manager
Shell Global Solutions International BV

6 www.shell.com/globalsolutions
 SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®

REVAMPING NEW UNITS

Many of the projects described in this supplement are revamps
of newly installed hydrocrackers. Why would a refiner invest
additional capital in a new unit that is still in its first cycle?

As much as six years can elapse from completing the

configuration study to the unit starting up and much can
change in that time. Market conditions may have shifted
or there may have been changes in emissions legislation
or product-quality specifications. For example, if the market
demand for middle distillates has outstripped the initial
forecasts, the owner may be keen to increase capacity or,
if some product streams are achieving an unanticipated
margin, modify for a different product slate.

Shell Global Solutions has worked with several refiners,

including, for example, Valero and Marathon, to revamp
their newly started up hydrocrackers. These projects made
relatively small adjustments but their impacts were
substantial: they ensured that the new assets continue to
be relevant to the prevailing market conditions and provide
substantial bottom line benefits.

‘TECHNOLOGY FOCUS

Revamping an existing hydrocracker or hydrotreater
is substantially more complex than building a new one
and is a highly specialised area that calls for advanced
process engineering skills and wide-ranging operating
experience. A selection of the actions taken during a
revamp is shown below.
New technologies may be installed, including:
Q state-of-the-art reactor internals that can enable a
greater catalyst volume to be loaded into the reactor;
Q latest-generation catalysts to help improve product
yields and cycle lengths;
Q high-capacity distillation trays to help improve
throughput cost-effectively;
Q additional rotating equipment, such as turbines, pumps
and compressors, to support the increased capacity;
and/or
Q higher-capacity relief valves to help remove hydraulic
constraints.
A revamp may require operational changes, for example:
Q realigning the process configuration to modify the
conversion;
Q optimising the feedstock selection and preparation;
and/or
Q running the unit to the limit of its design constraints to
achieve capacity creep.
Studies and reviews often are required, including:
Q dynamic simulations for reactor thermal stability checks
during normal and upset conditions; and/or
Q material reviews of corrosion rates in, for example,
wash-water loops and fired equipment.
Existing equipment is not replaced unless there is a strong
economic case, so recycle gas compressors and recycle gas
turbines, for example, are rarely replaced. Moreover, care
is taken to avoid the additional duty triggering the need for
more steam-raising capacity.

www.shell.com/globalsolutions 7
MOVING THE OPERATING WINDOW

HOW TO MAKE ROBUST INVESTMENTS

IN TODAY’S VOLATILE, CAPITAL-
CONSTRAINED MARKET
Amid the backdrop of today’s harsh refining landscape, most refiners have a clear aspiration of where they want to get to,
but many are often less clear about what they need to do to get there. For instance, there is a wide range of options for
them to consider when evaluating what project they should select, what kit they should install and what configuration
changes they should make. Moreover, the economics of each option may ultimately prove to differ enormously,
depending on how the mid- to long-term market dynamics play out.

So what steps should a refiner take to make a robust investment?
At Shell Global Solutions, we typically deliver more than
10 investment planning studies per year for refineries and
petrochemical plants around the world. The first step, according
to our methodology, is to have a view of the future market. What
crude price should you use in your calculations? Which products
will be in highest demand? Will the product specifications in
your markets and environmental legislation tighten further?
For instance, in 2020 for Europe and in 2025 for the rest of the
world, the sulphur specifications for bunker marine fuels will shift
from 3.5 to 0.5%. The potential consequences of this are that
demand for high-sulphur fuel oil may collapse, which will have
an immediate impact on its price. Clearly, market trends and
events such as this must be considered in any investment
scenario. The impact on different businesses will vary according
to, for example, their asset base and the markets they serve.
Consequently, the solution will be different too. In that respect,
it is particularly important to establish the so-called margin
drivers of a site. Why are we doing business? Which products,
units and supply and trading options generate the most value?
The client’s overarching strategic considerations and objectives
are built into this analysis. Once there is an agreed set of

IT IS PARTICULARLY IMPORTANT TO ESTABLISH THE SO-CALLED

MARGIN DRIVERS OF A SITE. WHY ARE WE DOING BUSINESS?
WHICH PRODUCTS, UNITS AND SUPPLY AND TRADING OPTIONS
GENERATE THE MOST VALUE?

8 www.shell.com/globalsolutions

premises and we have defined the sensitivities to be tested
and the desired flexibility, we work with them to develop a
list of all the investment options that could help the customer
to achieve their objectives: a task that calls for considerable
experience and industry insights.
Let us take a simple example in which a refiner has
determined that it must respond to market changes by
increasing middle distillates capacity. It could build a new
unit, revamp an existing unit, upgrade to a higher-activity
desulphurisation catalyst or improve the refinery’s
hydrocarbon management in another way. But which option
would be the best fit for that specific refinery?
Screening those options requires detailed technical and
economic evaluations. Capital cost estimates are made
using an extensive projects database. Operating costs are
estimated using operating experience and best-in-class
benchmarks. A scenario-based approach is applied so that
the selected option is robust under a wide range of economic
circumstances. This is then taken for development into a firm
investment proposal: one that aligns with the client’s
long-term vision and overarching strategic objectives.
If a business were to launch a capital project without
such an in-depth evaluation of what each option involves,
substantial value could be at risk. A seemingly value-
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adding project could potentially turn into a poor
investment decision, especially if integration opportunities
are overlooked during the early phases. A key
consideration is whether all the existing units will be able
to cope with the streams coming from the new assets. For
instance, can an existing gas oil hydrotreater deal with
some light coker gas oil or is a new unit required?
Likewise, additional hydrogen is likely to be required, but
how much and from where will it come? Can you expand
the hydrogen plant or implement hydrogen recovery, or
should you contract a hydrogen supplier? There are
usually many different options, but the economics can
vary substantially.
Similarly, although most revamps do not significantly
increase the demand on utilities, it is important to confirm
that the existing utilities system has sufficient capacity.
For example, there have been cases in which owners have
discovered at a very late stage that the existing boilers
could not cope with the extra demand. Consequently, the
owners had to either dial down their operations or add an
additional boiler at considerable expense.
In recent years, many refiners have had to reduce the
sulphur levels in their diesel from 50 to 10 ppm. This
often requires a revamp of the hydrodesulphurisation unit
involving the replacement of the existing reactor internals
with state-of-the-art reactor internals for improved catalyst
utilisation and using a more active catalyst. That, however,
is only part of the story. The refiner must also look carefully
at the impact on the rest of the refinery. For instance, the
higher concentration of hydrogen sulphide in the reactor
section means that the wash-water facilities may need
upgrading and that the amine treating and sulphur recovery
units need checking and possibly revamping. It is vital that
all these changes are also included in the evaluations.
Substantial value can be won or lost during front-end
development. No matter what your business objectives
are, there is likely to be a wide range of potential responses
and it is important to consider them through a range of
operational and strategic lenses.
Ariel Bru
Team Lead, Hydrocarbon Management
Shell Global Solutions International BV
Ed Ouwerkerk
Principal Consultant, Hydrocarbon Management
Shell Global Solutions International BV
www.shell.com/globalsolutions 9
MOVING THE OPERATING WINDOW

BACKWARD INTEGRATION MOVES

HYUNDAI FORWARDS
When striving to increase the throughput of a hydrocracker or other conversion unit, the
amount of vacuum gas oil (VGO) that the high-vacuum unit (HVU) can generate is often a
critical constraint. To overcome this, some refiners lift more from the short residue into the
VGO, but that brings with it metals and other contaminants that can affect the conversion
unit’s reliability. Fortunately, with Shell’s deep-flash technology, the VGO yield of an HVU
can often be increased substantially without affecting the downstream units’ reliability
through a low-cost revamp, as a recent project for Hyundai Oilbank demonstrates.

10 www.shell.com/globalsolutions

WE WERE VERY IMPRESSED
WITH THE QUALITY OF THEIR
SOLUTION AND THEIR
RESPONSIVENESS.
When Hyundai Oilbank conceived the notion of building a
20,000-bbl/d Group II base oil manufacturing plant, its
integration with the adjacent Daesan refinery in South Korea
was key. To make the project work, Hyundai Oilbank needed
to revamp the hydrocracker to provide the right amount of
feed at the right quality. However, even after doing that, the
hydrocracker would be short by about 5,000 bbl/d, but the
Shell Global Solutions team identified an opportunity to produce
additional feedstock for the hydrocracker by going further back
into the processing stream and revamping the HVU.
“We identified various ways in which Hyundai Oilbank
could get more VGO to the hydrocracker,” explains Kaushik
Majumder, Team Lead and Licensing Technology Manager –
Distillation, Shell Global Solutions. “Essentially, these centred
on two main options. The first was a major revamp of the
existing vacuum distillation unit (VDU) to convert it to a
deep-flash HVU. The second involved a minor revamp of the
VDU and adding a new deep-flash HVU in parallel to
co-process atmospheric residue (AR) and vacuum residue (VR)
from the VDU.”
Shell Global Solutions conducted cost–benefit analyses of these
options. Hyundai Oilbank then selected the option involving a
major revamp, as this provided the lowest-capital-cost option,
but, says Majumder, it was also the most technically challenging
and the riskiest in terms of the project economics owing to the
potential for significantly extending the planned turnaround of
the crude distillation unit (CDU) and the HVU.
The changes made to the refinery configuration through the HVU
revamp are explained in Figure 1 (overleaf).
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“The biggest limitation was the furnaces,” says Majumder.
“Hyundai Oilbank had two furnaces feeding the existing HVU
and to meet the project goals we needed to increase their duty
significantly. So, we revamped both extensively, including
adding tubes in the convection section and switching
completely to gas firing instead of dual-fuel firing. This was
critical to the success of the project.”
Other important changes were upsizing the transfer line and the
column feed inlet nozzle. The team also replaced the existing
vapour horn type feed inlet device with a Shell Schoepentoeter*
Plus inlet device (see boxed text overleaf) to reduce the
entrainment of VR to VGO (hydrocracker feed) and to ensure
better vapour distribution. “This was very important for the
performance of the unit because we were almost at the
maximum limit of the transfer line velocity,” says Majumder.
In addition, the team took all the possible steps to minimise the
vacuum column pressure drop to help maximise distillate yield.
The pumparound and wash-bed packing were replaced with the
latest-generation, low pressure drop structured packing and the
existing chimney trays were replaced with Shell’s proprietary
low pressure drop draw-off trays.
The team also installed new spray distributors and made minor
plant modifications outside the column to support the main
revamp, such as upgrading the heat exchangers, pumps etc.
“Unlocking more barrels of VGO from the HVU was key to the
economics of our lubricant base oils project because the HVU
and the hydrocracker are configured to work with the new
base oil plant as a value chain,” says Dalho Kang, Refinery
Manager, Hyundai Oilbank.
“Shell Global Solutions provided us with a detailed set of creative
options that would help us to unlock more barrels of VGO from
the HVU and then went on to evaluate each one against our
objectives. Once we had selected our preferred option, they
licensed the technology to us and guaranteed its performance.
We were also very impressed with the quality of their technology
solution and their responsiveness,” Kang concludes.
The execution of the HVU revamp by Hyundai Oilbank was
exceptionally efficient. The full scope was delivered within the
budgeted days and cost, which confirmed that the full revamp
option was the best decision for this project. After start-up, all
the performance guarantees, including VGO yield and quality,
were fully met.
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 MOVING THE OPERATING WINDOW

Original refinery block scheme Refinery block scheme with new lubricant base oil unit

CDU 1 CDU 1
Hydrocracker Hydrocracker
~35–37 kbbl/d 40 kbbl/d
AR AR
VGO VGO Hydrowax
54.5 kbbl/d 56 kbbl/d
HVU ~30 kbbl/d HVU 35 kbbl/d Coker heavy
Coker heavy gas oil
75.5 kbbl/d ~5 kbbl/d 76 kbbl/d gas oil
21 kbbl/d 20 kbbl/d ~5 kbbl/d Lubricant base
AR AR
oil plant
VR Direct VR Direct 20 kbbl/d
coker unit coker unit

CDU 2 CDU 2

Residue Residue
AR Residue Treated AR fluidised AR Residue Treated AR fluidised
desulphurisation catalytic desulphurisation catalytic
cracking cracking

Revamp New

Figure 1: The refinery block scheme before (left) and after (right) the HVU revamp.

MINIMUM-SCOPE VERSUS MAXIMUM-SCOPE HVU REVAMPS

W

Many refiners have a strategic need to maximise the
throughput of their conversion units and an HVU revamp
can often be an extremely attractive solution. But some are
often unaware that the scope of such a project can vary
enormously according to the unit’s current bottlenecks and
the customer’s specific objectives, writes Kaushik Majumder,
Team Lead and Licensing Technology Manager –
Distillation, Shell Global Solutions.
the capacity in the column, furnace and transfer line to do so.
Revamping this unit only required modifications to the column
internals and replacing the existing feed inlet device with a
Shell Schoepentoeter Plus.
We implemented these changes within the turnaround window,
and our customer has reported that the unit now generates 8%
more VGO of the desired quality.

“In my opinion, no HVU could be revamped more than
Hyundai Oilbank’s. We really pushed at the limits of what
is achievable. But some projects do not need to push as
hard and can achieve their objectives through a relatively
simple revamp in which we only introduce a new feed inlet
device and change the wash bed. We would call that a
minimum-scope revamp.
For example, we recently worked with a non-Shell refinery
in India where the VGO yield was limited owing to
excessive entrainment of metal from the short residue.
Unlike at Hyundai Oilbank, we found that changes would
not be required to the furnace and most of the packing
could stay. They wanted to produce more VGO and had
Whether the project involves maximum scope, minimum scope
or something in-between, an HVU revamp can often be an
extremely compelling project. Typically, the capital cost is
relatively low, the payback time is short and the hardware
changes can often be made within an existing refinery
turnaround window.
Having said that, HVU revamps can often be very challenging
and, if they are not engineered properly, it may be impossible to
meet the desired revamp objectives. At Shell Global Solutions,
we have delivered almost 50 new designs or revamps since
1985 and that track record brings with it invaluable experience.”
For more on minimum-scope HVU revamps, see page 22.

THE SHELL SCHOEPENTOETER PLUS

The Shell Schoepentoeter Plus is a key component that Shell
Global Solutions has introduced in most of its HVU revamps
since the device was developed in 2010. This is an advanced
version of the Shell Schoepentoeter, a versatile, low pressure
drop, vane-type feed inlet device. The conventional device has
proven to be one of the most effective technologies available on
the market for efficient de-entrainment in critical services such as
deep-cut vacuum distillation and the new “plus” device provides
yet more efficient de-entrainment, especially at higher vapour
loadings, owing to its innovative vane design for minimising
liquid re-entrainment.
This technology has an excellent track record. For example, a
recent inspection of a Shell Schoepentoeter Plus in a deep-cut
vacuum column in 2010 revealed it was mechanically and
functionally robust after five years of on-target performance.
*Schoepentoeter is a Shell trademark.

12 www.shell.com/globalsolutions
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ADJUSTING THE MODE OF OPERATION:

HOW AND WHY THE HYDROCRACKER

AT A SHELL REFINERY WAS REVAMPED
FROM A TWO-STAGE TO A SINGLE-
STAGE CONFIGURATION

Excellence in refining is dynamic. When external conditions change, as they inevitably will,
refiners need to adapt to ensure that their mode of operation continues to be relevant. And
when they do, a revamp project can often be key to ensuring a cost-effective response, as
an initiative at a Shell refinery demonstrates.

www.shell.com/globalsolutions 13
 MOVING THE OPERATING WINDOW

The hydrocracker was originally designed by Shell in

W

the 1980s as a full-conversion unit with a two-stage

configuration geared towards middle distillate
production. In response to growing demand for
middle distillates, the unit’s capacity was later
increased to about 167% of the design capacity,
though it still operated as a two-stage unit.

However, increasing demand for petrochemicals and an

enhanced petrochemical margin provided the triggers that
led to Shell changing the hydrocracker’s mode of operation.

To increase its petrochemicals capacity, the company intended
to build an ethylene cracker in the adjacent petrochemicals
plant, so it commissioned Shell Global Solutions to help plan the
investment and to understand and evaluate its technical and
operational options.
It was during this review that Shell Global Solutions’ strategic
planners identified that the economics of the refinery and the
petrochemicals site could be greatly enhanced by adapting the
hydrocracker to produce large amounts of unconverted oil
(hydrowax), which could be used as ethylene cracker feedstock.
So, working with the refinery’s management, Shell Global
Solutions devised a plan to revamp the hydrocracker into two
parallel, single-stage reactors (see figures 1 and 2) operating at
reduced conversion, but with an increased fresh feed capacity of
some 300% of the original design capacity and a catalyst cycle
length of two years. The revamped hydrocracker has retained
the common recycle gas compressor, the high- and low-pressure-
separators, and the common distillation section.
As with any revamp, it was critical to explore the impact on
the existing major equipment. Consequently, Shell Global
Solutions undertook a technical feasibility study to understand
the impact of these changes on the unit’s hydraulics and heat
and material balances. The study concluded that the project
was viable, although there were concerns regarding hydrogen
partial pressure, recycle gas purity, recycle gas compressor
performance and sour water corrosiveness.
Further investigations confirmed the requirement for a recycle
gas hydrogen sulphide scrubber and increased wash-water
make-up flow. The engineering study concluded that several
generally low-cost modifications were necessary. For example,
in the hydrocracking reactor the project team:
Q fitted an additional feed filter to accommodate the higher
feed rate;
Q installed Shell reactor internals to increase the catalyst
volume and utilisation;
Q increased the fresh gas compressor capacity to cope with
the increase in hydrogen consumption;
Q modified the water booster pumps and increased the
wash-water make-up to minimise the ammonium bisulphide
concentration in the sour water phase of the cooled
reactor effluent;
Q adapted the recycle gas compressor and turbine to increase
the recycle gas flow, which was required to meet minimum
gas–oil ratios; and
Q installed a new recycle gas amine scrubber to improve
recycle gas hydrogen purity and ease hydraulic constraints.

14 www.shell.com/globalsolutions

THIS HYDROCRACKER REVAMP PROJECT PROVIDES AN EXCELLENT EXAMPLE OF
HOW MAKING THE MOST OF EXISTING ASSETS CAN SUPPORT A CHANGE IN
A REFINER’S BUSINESS DRIVERS.
OVERCOMING CHALLENGES
Robert Karlin, Hydrocracking Team Lead, Shell Global
Solutions, has extensive experience of hydroprocessing
design. He and his team have executed several
hydrocracker revamps. He explains that the second-stage
feed system and high-pressure reactor circuit can present
significant challenges when converting to a new service.
“These had originally been designed to process ‘clean’
fractionator bottoms that contained almost no sulphur or
nitrogen contaminants,” he says. “The second-stage reactor
had originally been designed with a cracking catalyst
system for conversion, so it was going to see a major
change in feedstock: fresh vacuum gas oil containing
sulphur, nitrogen, Conradson carbon and metals.”
“It was a major challenge to design a functional
demetallisation, pretreatment and cracking catalyst system
within the existing second-stage reactor,” Karlin continues.
“And, because of the significantly higher level of sulphur and
nitrogen entering the unit, we carefully evaluated the entire
wash-water system to ensure that the cold section of the unit
(from reactor effluent air cooler through to the fractionation
system) is adequately protected against corrosion.”
Pre-revamp two-stage configuration
Off-gases
VGO
Naphtha
Jet fuel
Diesel
Second-stage feed
Hydrowax
Figure 1: Before the revamp, the hydrocracker had a two-stage
configuration. It was operating at 167% of the original design
capacity and focused on middle distillate production.
SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®
In support of the process revamp study, a pilot-plant
testing programme was carried out at Shell Technology
Centre Amsterdam to compare the performance of the
original design basis catalyst system against three
alternatives that Criterion Catalyst & Technologies had
proposed. From these results, the refinery’s management
was able to select the option that provided the best fit for
its objectives.
Since the unit started up in the new single-stage mode in
2010, it has delivered both the quantity and quality of
hydrowax required for the ethylene cracker.
“This hydrocracker revamp project provides an excellent
example of how making the most of existing assets can
support a change in a refiner’s business drivers,” says
John Baric, Licensing Technology Manager, Shell Global
Solutions. “In this case, we adapted the mode of
operation of a hydrocracker that had been in operation
for nearly 30 years in order to support the economics of
a major new project. Consequently, this cost-effective
revamp has had a major impact on the economics of the
wider enterprise.”
Post-revamp single-stage configuration
Off-gases
VGO
Naphtha
Jet fuel
Parallel
feed
Diesel
Hydrowax
Figure 2: The revamped hydrocracker operates with the two original
reactors in parallel. It has a feed rate of 300% of the design
capacity and about 70% of its output is hydrowax, which is fed to
the ethylene cracker.
www.shell.com/globalsolutions 15
MOVING THE OPERATING WINDOW

S-OIL’S JOURNEY TO

HYDROCRACKING
HIGH PERFORMANCE
Some revamp projects can be triggered by a strategic
need to change the product mix, but often the trigger is
more straightforward, for example, the desire to enhance
performance. This was the case at S-Oil’s Onsan refinery
in Ulsan, South Korea. This leading refiner was dissatisfied
with the cycle length of its hydrocracker, and installing Shell
reactor internals and next-generation catalysts from Criterion
Catalysts & Technologies (Criterion) proved to be a robust,
high-value solution. S-Oil calculates the value to its
operations as in excess of $20 million a year.

S-Oil’s Onsan facility is the fifth largest refinery in the world1

and has an extremely complex configuration that includes a
hydrocracker, a residue fluidised catalytic cracking unit, an
aromatics complex and a state-of-the-art lubricants base oils
plant. This enables it to produce high-value light oil products
such as gasoline, diesel and kerosene, as well as petrochemicals
and group 2 and 3 lubricants base oils.

With a corporate goal of becoming the most competitive oil

refiner in Asia Pacific, S-Oil is continually striving to maximise
its performance and profitability. So, when the cycle length
of its hydrocracker was curtailed, management took steps
to rectify the situation by working with Criterion and Shell
Global Solutions.

The single-stage, two-reactor, 170-bar, 75,000-bbl/d

hydrocracker was originally licensed from another vendor. The
unit’s most valuable output is unconverted oil, which is routed to
the wax hydroisomerisation unit and then the hydrofinishing unit
to make Group 3 base oils. It also produces large amounts of
middle distillates and smaller quantities of less-valuable liquefied
petroleum gas and naphtha.

S-Oil had desired a cycle length of 36 months but the unit had
only achieved 32 months in the previous cycle and other cycles
had been even shorter. Pretreatment limitations meant that, at
the end of run, the unconverted oil quality tended to decline.
Consequently, S-Oil had to derate the base oil unit to maintain
product quality and there was little opportunity for deeper
processing of vacuum gas oil (VGO).

www.hydrocarbons-technology.com/features/feature-top-ten-largest-oil-refineries-world
1

16 www.shell.com/globalsolutions

Meng Loong Chua, Senior Technical Service Engineer, Criterion
Catalysts & Technologies, was part of the team that investigated
the unit. He explains that, on the pretreatment portion, the
existing catalyst was suboptimal in stability and losing activity
too quickly over the cycle. There was also suboptimal catalyst
utilisation that resulted in the short cycle length. “We found that
there was a high radial temperature spread over the catalyst
beds,” he says. “This indicates low uniformity of vapour–liquid
distribution and suggests that the catalyst bed is not being used
efficiently, which can shorten cycle life.” In the cracking reactor,
there was extra activity left in the last cycle and this provided
the opportunity to optimise the cracking catalyst towards more
middle distillate production and better hydrogenation for the
unconverted oil production.
To address these issues, the team replaced the internals in both
the hydrocracker’s reactors. The new hardware that it fitted
included Shell high dispersion (HD) trays, Shell ultra-flat
quench (UFQ) interbed internals, Shell catalyst support grids
and Shell bottom baskets (see box, Reactor internals for S-Oil’s
Onsan refinery, page 19).
SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®
In addition, Criterion tailored a stacked-bed catalyst system that
was designed to deliver balanced activity and selectivity, an
optimal product slate and significantly better-quality unconverted
oil. This was informed by a series of pilot plant tests that used
S-Oil’s actual feeds (see box, Stacked-bed catalyst system for
S-Oil’s Onsan refinery, page 19).
VALUE DELIVERED
Since the change to Criterion catalysts and Shell reactor
internals, conversion at the unit can be lowered to increase the
yield of unconverted oil, which is more valuable, while meeting
the required product quality.
The unit has demonstrated exceptional selectivity towards the
products that are most important for S-Oil. As shown in Table 1
(overleaf), compared with the previous cycle, the yield of the less
valuable products, liquefied petroleum gas and naphtha,
decreased by 0.5 and 6.8% respectively. Unconverted oil from
the hydrocracker (which is fed to the base oil plant) increased,
which increased the yield of base oil products by 7.1%. The
distillate yield remained similar. In addition, hydrogen
consumption fell and catalyst stability improved.
Key to these results is the unit’s improved temperature
performance and the catalyst package. As shown in Figure 1,
the weighted average bed temperature (WABT) is substantially
lower in the post-revamp cycle than in the pre-revamp cycle.
Mr Tae Sung Yang, Process Engineering Manager, S-Oil,
is responsible for the unit’s operations. He says, “The
combined team of technologists from S-Oil, Shell Global
Solutions and Criterion unlocked major benefits for the
economics of our refinery. We have calculated it to be more
than $20 million a year.”
“After installing the new catalyst system and reactor internals,
the unit achieved the 36-month cycle length that we had targeted
– the first time that it had ever done so,” he continues. “In
addition, we have been able to increase base oil production
and to treat heavier feeds. Based on the success of this project
and on the excellent working relationship that we have
established, we are currently evaluating launching another
revamp project with Shell Global Solutions and Criterion.”
W
www.shell.com/globalsolutions 17
MOVING THE OPERATING WINDOW

W
36 months end of run
406
404
402
400
398
396

WABT, ºC
394
392
390
388
386
384
382
380
0 100 200 300 400 500 600 700 800 900 1,000 1,100
Days on stream
Pre-revamp cycle Post-revamp cycle

Figure 1: The revamped unit has displayed enhanced temperature

performance in its first cycle compared with the last cycle before
the revamp.

VOL% YIELDS POST-CYCLE REVAMP

Liquefied petroleum gas Base –0.5

Naphtha Base –6.8

Kerosene Base –2.4

Diesel Base +1.9

Base oil – light grade #1 Base

Base oil – light grade #2 Base +0.6

Base oil – medium grade Base +3.9

Base oil – heavy grade Base +2.6
Base oil product yields Base +7.1

Table 1: After the new reactor internals and catalysts were installed, naphtha
yield decreased by 6.8% while the yield of base oil products increased by 7.1%.

AFTER INSTALLING THE NEW CATALYST

SYSTEM AND REACTOR INTERNALS,
THE UNIT ACHIEVED THE 36-MONTH
CYCLE LENGTH THAT WE HAD
TARGETED – THE FIRST TIME THAT IT
HAD EVER DONE SO.

18 www.shell.com/globalsolutions
 SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®

STACKED-BED CATALYST SYSTEM FOR S-OIL’S ONSAN REFINERY

Criterion developed a tailored, stacked-bed catalyst system

for the unit. At the top of the pretreatment reactor (Figure 2),
MaxTrap[Ni, V] is used to trap the nickel and vanadium in
the VGO. Then a combination of CENTINEL Gold
DN-3300 and Z-503, specially selected for their ability to
MaxTrap[Ni,V]
remove nitrogen and to provide a viscosity index boost, are
DN-3300 used for pretreatment.

In the second reactor (Figure 3), Z-673 was selected for its
excellent hydrogenation properties and Z-623 for its
Z-673
selectivity towards distillates.
DN-3300

DN-3300 Z-623

Z-503 DN-3300

Figure 2: The pretreatment reactor. Figure 3: The cracking reactor.

‘REACTOR INTERNALS FOR S-OIL’S ONSAN REFINERY

S-Oil installed a set of state-of-the-art reactor internals

Conventional tray Bubble-cap tray Shell HD tray
from Shell Global Solutions that includes: 10–15% wetting 20–30% wetting Near-perfect wetting
Q Shell HD trays, which help to optimise catalyst
utilisation by achieving enhanced vapour–liquid and
thermal distribution, and utilise nearly 100% of the
catalyst inventory (Figure 4);
Q Shell UFQ interbed internals, which provide
uniform gas–liquid redistribution and quench mixing
between catalyst beds;
Q Shell catalyst support grids, which feature
support beams and a grid screen that utilises a
wedge-wire construction that is less prone to foulant Inert material Dry catalyst Wet catalyst
build-up and clogging; and
Q Shell bottom baskets, which are designed to be Figure 4: Shell HD trays incorporate proprietary nozzles that can help
to maximise catalyst utilisation.
extremely flat in order to increase the loading of
catalyst in the bottom dome.

www.shell.com/globalsolutions 19
MOVING THE OPERATING WINDOW

HYDROTREATER REVAMP
PUTS TAIF REFINERY AHEAD OF DIESEL REGULATIONS
Upgrading an existing hydrotreater boosts capacity by 50% and
enables refinery to produce Euro 5 quality diesel

When new diesel quality specifications were on the horizon

in Russia, the TAIF-NK refinery in Nizhnekamsk, Tatarstan,
needed to find a way to adapt its operations cost-effectively
to produce ultra-low-sulphur diesel. “We were driven by the
need to produce low-sulphur diesel to meet forthcoming
environmental legislation and by the economic benefits of
improving the quality of the fuel,” says Rashit Shamgunov,
General Manager, TAIF-NK. “Taxes on poorer quality diesel
were increasing, while those for the higher-quality, lower-
sulphur product were falling.”

“We were keen on utilising our existing assets to minimise

investment costs and delivery timescales, so sought an
experienced licensor to help us revamp our atmospheric gas oil
hydrotreater,” adds Igor Bogomazov, Chief Engineer, TAIF-NK.

The Russian government was also gearing up to including

domestic heating oil on its list of excisable goods, which
enhanced TAIF’s desire to eliminate the fuel from its production
line-up and to replace it with ultra-low-sulphur diesel.

The original hydrotreater contained Criterion Catalysts &

Technologies (Criterion) catalysts. The strong performance of
these catalysts led TAIF refinery to approach Shell Global
Solutions, which is affiliated with Criterion, for the revamp of
the hydrotreater.

“We had a very positive experience with Criterion and were

impressed with the performance of its catalysts. These were
still performing to their original specification almost 10 years
after being installed, despite only having had a guaranteed
cycle length of three years,” says Anatoly Chekashov, Head of
the Development Department, TAIF-NK.

Edmundo van Doesburg, Lead Process Engineer, Shell Global

Solutions, who was heavily involved in the revamp project,
explains, “We were asked to undertake a feasibility study to
determine the best option for upgrading the hydrotreater
while TAIF conducted a cost assessment. Following this work,
TAIF decided to continue with the project, so the hydrotreater
was relicensed to Shell Global Solutions on the basis of its
revamp design.”

20 www.shell.com/globalsolutions

Van Doesburg continues, “As part of the revamp project, we
also addressed aspects such as the hydraulic constraints and
corrosion problems. TAIF’s desire to co-process visbreaker
naphtha was a complicating factor and required an extensive
revamp of the work-up section to maximise the diesel yield
while meeting the flashpoint specification without defaulting
to a costly, energy-intensive atmospheric fractionator.”
Utilising as much of the existing equipment as possible
and ensuring that any work would fit in with the normal
operations of the refinery were key considerations for the
revamp project. “We needed to keep investment costs down
and to tie the upgrade into the operation of the refinery to
prevent having to shutdown the hydrotreater and lose
valuable production time,” Chekashov explains.
Consequently, the work was split into two phases so that it
could be carried out during the scheduled 20-day shutdowns
of the hydrotreater or while it was still operating. The first
stage of the revamp involved installing a new hydrogenation
reactor to achieve deeper desulphurisation, new Shell
reactor internals, a vacuum stripping column to remove
any remaining moisture from the product and new heat
exchangers to reduce the thermal input of the unit. This
phase of the project was commissioned in June 2012.
The project’s delivery timescale was of utmost importance
for TAIF, as the environmental conditions, such as weather
constraints, had the potential to affect the project development
severely. Therefore, the detailed engineering started before the
issue of the final basic engineering package, which consequently
required adjustments to the standard project schedule.
“A 300-t reactor was ordered that could only be delivered by
sea, which put time pressure on the delivery schedule owing
to the risk of the river freezing over during the winter months.
It was vitally important that the reactor was on-site before the
winter, otherwise, the project would have been held up until
the following spring,” explains Chekashov.
Following the first phase, the team achieved a 30% increase
in the unit’s capacity to reach 2.015 Mt/y of feedstock. The
sulphur content of the diesel produced met the Euro 5
specification of less than 10 ppm.
The second stage renovation kicked off in 2013. This was
geared towards making the unit capable of processing all the
middle distillates from the refinery and excluding domestic
heating oil from the product range. The feedstock pumps at
the unit boundary and the pumps for supplying feedstock
from the tank farm were replaced. Additional recuperative
heat exchangers were included in the circuit and the vacuum
splitter column condenser and filtering elements were
replaced in the feedstock stream.
SPECIAL SUPPLEMENT TO
HYDROCARBON
PROCESSING®
This phase of the work lifted the unit’s capacity by almost
50% to 2.3 Mt/y while maintaining the same natural gas
and steam consumption for the unit. Despite the increased
capacity and significant improvement of the fractionation
sharpness between the diesel and the naphtha, the overall
thermal energy consumption has not increased owing to the
improved heat integration.
A strong working relationship between TAIF and Shell Global
Solutions, with constant sharing of ideas and plans, was a
key factor in delivering these results.
“This was a challenging project that required a lot of internal
planning from the refinery with a strong focus on safety,” says
Bogomazov. “Working together as one team meant that we
were able to take a flexible and creative approach to the
revamp to overcome space and time constraints.”
Finding ways to keep or improve existing pieces of
equipment wherever possible also required special planning.
TAIF wanted to utilise its existing furnace, so Shell Global
Solutions devised a plan to keep it in operation and improve
the heat recovery. “As a result of some minor changes to the
flow scheme of the heat exchanger, we can now use the heat
for other units around the refinery,” says Chekashov.
“The level of expertise of Shell Global Solutions’ technical
specialists was tremendous and we were very impressed with
their creativity and advice. For instance, they introduced
some interesting ideas, including a furnace bypass, a recycle
gas circulating reflux cooler and a vacuum splitter column.
When they discussed these ideas with our technical experts,
the results were fantastic. That strong working relationship is
ongoing,” he concludes.
“Many of Shell Global Solutions’ suggestions to alleviate the
hydraulic constraints, improve heat integration and enhance
the fractionation between the naphtha and the diesel
products were implemented and have proven very effective
and economically stable, for which we are very grateful.
Without these creative ideas, we might not have had such a
great result,” adds Bogomazov.
The approximately $50-million revamp project resulted in an
overall increase in diesel fuel production of more than 50%
between 2011 and 2014.
“Everything that Shell Global Solutions and Criterion
promised is now a reality,” Shamgunov concludes. “We were
able to begin production of Euro 5 diesel ahead of the new
regulations, which boosted our image from the political and
environmental standpoints, and brought with it economic
gains. The future looks very bright for us.”
www.shell.com/globalsolutions 21
MOVING THE OPERATING WINDOW

LOW-CAPITAL-COST REVAMPS OF
HIGH-VACUUM UNITS (HVU)
With demand for diesel fuel continuing to increase in many markets, refiners around the world are keen
to increase the throughput of their conversion units. Consequently, it is attractive to recover as much
hydrocarbon feedstock, such as heavy vacuum gas oil (HVGO), as possible from the atmospheric
residue (AR) that is routed to conversion units.

Off-gas to
Shell Global Solutions’ deep-flash, high-vacuum technology vacuum ejectors
has been developed through extensive research on mass
transfer and separation equipment, and has also been New spray distributor
supported by operating experience from numerous Shell and LVGO
Shell-advised units over many years. This technology includes New wash-oil bed
structured paking
five key design features that can be tailored to meet a refiner’s
specific revamp requirements. These are the: HVGO

1. proprietary furnace coil design; New insulated, double-

2. Schoepentoeter* inlet device;
3. wash-oil section design;
4. insulated, low pressure drop draw-off trays; and
5. direct contact condensation sections.
In this article, we profile two HVU revamp projects at
European refineries. When scoping these projects, it became
clear that both refiners had limited capital and a strong desire
to minimise unit downtime, so Shell Global Solutions’
consultants, working with the refinery teams, elected to install
only a selection of the key design features. This demonstrates
the flexibility of the technology.
CASE STUDY 1: INCREASING HVGO YIELD
This refiner’s objective was to increase recovery of HVGO
from the AR to feed the hydrocracker and, at the same time,
improve the reliability of the HVU so that a longer run length,
a target four to five years, was achievable between
maintenance turnarounds. For this project, the allowable
changes were restricted to the HVU column internals. The
revamp was successfully executed using Shell Global
Solutions’ deep-flash technology.
To increase the feed rate to a hydrocracker, more
hydrocarbons must be recovered from the vacuum residue
(VR). This means that the volume of the HVGO stream must
increase, up to acceptable limits of heavy metals (vanadium
and nickel) and Conradson carbon residue, for reliable
hydrocracker operation.
The modifications were carried out during a routine refinery
maintenance turnaround and are described in Figure 1.
*Schoepentoeter is a Shell trademark.
deck draw-off tray
AR
New stripping trays
Steam
VR to visbreaker
unit
Figure 1: Modifications to the HVU included fitting a new spray distributor,
new wash-oil bed structured packing and new stripping trays.
New spray distributor and wash-oil bed
A very common reliability problem for HVUs is coke formation
within the wash-oil bed’s structured packing. With elevated
flash zone temperatures and a deep vacuum, entrainment of
VR in the rising feed vapour can cause coke formation within
“dry” sections of the bed. This can increase the pressure drop
over the wash-oil bed. With a higher pressure drop in the
wash-oil bed, the flash zone pressure increases, thus leading
to loss of HVGO yield to the VR.
The coke build-up and resultant high pressure drop can only
be resolved by stopping the HVU’s operation to replace the
wash-oil bed’s structured packing. A new spray distributor
was designed to ensure that there is adequate wetting of
the wash-oil bed at all times. The free-passage area of the
nozzles is adequate to prevent plugging and fouling. Filters
were provided upstream of the spray distributor to remove
any large particles that might block the spray nozzles. The
spray distributor was also moved closer to the top of the
wash-oil bed section to reduce re-entrainment of liquid from
the nozzles.
The wash-oil bed itself was replaced with six layers of
a higher-capacity structured packing to help avoid VR
re-entrainment and reduce the pressure drop over the
wash-oil bed.

22 www.shell.com/globalsolutions
 SPECIAL SUPPLEMENT TO
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PROCESSING®

New, insulated, low pressure drop draw-off tray
Hot vapours from the HVU flash zone rise and contact the
underside of the “dirty” wash-oil draw-off tray first. The
temperature difference between the draw-off tray and the
rising hot vapours can cause condensation of HVGO,
which will be downgraded to VR. An insulated, low
pressure drop draw-off tray was installed to help minimise
this effect, which is known as wild reflux.
New stripping trays
To maximise the recovery of HVGO from the VR, the
amount of stripping steam applied at the bottom of the
HVU was doubled. The existing ejector system was
adequate to handle this higher vapour loading.
High-capacity Shell calming section sieve trays were
installed within the existing column insert below the feed
location. These trays were sized to handle the increased
vapour loading.

CASE STUDY 2: IMPROVING HVGO QUALITY 2.5

In this case, the refiner was experiencing poor quality
HVGO from the HVU: high metals content and almost 2
daily quality fluctuations. This indicates relatively poor
performance from the lower wash-oil zone, which was
Nickel, ppm

1.5
permitting entrainment of residue to the HVGO, so the
revamp focused on this area. Revamp

1
The performance of the HVU lower wash-oil zone system
is critical to achieving high vacuum gas oil (VGO) yields
0.5
with no residue entrainment. HVGO quality is key
because contaminants such as metals, Conradson carbon
residue and heptane insolubles are all detrimental to the 0
performance of a VGO hydrocracker or hydrotreater. The Operating days
wash-oil zone system performance relies on the hardware Figure 2: After the wash-oil zone revamp, the level of nickel in the
(especially the spray distributor, the draw-off tray and the HVGO fell.
wash-oil bed), but it is also important to understand how
to operate the system for optimum HVGO recovery.

During the planned turnaround, the lower wash-oil zone

hardware was changed and post start-up the operation
was optimised. Optimising the wash-oil system ensures
removal of any VR entrainment in the wash-oil bed so that
the HVGO yield can be maximised to ensure ongoing
unit reliability.
The revamp helped to improve the HVGO quality, as
demonstrated by the nickel content of the HVGO (see
Figure 2).
KEY TAKEAWAYS
By applying Shell deep-flash, high-vacuum technology,
existing HVUs can be revamped at relatively low capital
costs. The simple payback times for such revamps are very
attractive, and they can be undertaken within an existing
turnaround window.
John Baric
Licensing Technology Manager
Shell Global Solutions International BV

Kaushik Majumder
Team Lead and Licensing Technology Manager – Distillation
Shell Global Solutions International BV

www.shell.com/globalsolutions 23
Disclaimer
This document contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. All statements other than
statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and
uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’,
‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar
terms and phrases.

There are a number of factors that could affect the future operations of Royal Dutch Shell plc and could cause those results to differ materially from those expressed in the
forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell
Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks;
(h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing
business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects
arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals
and cost estimates; and (m) changes in trading conditions.

All statements regarding Hyundai Oilbank, S-Oil and TAIF-NK and their products and services are based solely on information provided by Hyundai Oilbank, S-Oil and TAIF-NK and
have not been independently verified by Shell Global Solutions.

Criterion Catalyst & Technologies (Criterion) is a wholly owned subsidiary of CRI/Criterion Inc., which is a part of the Shell Group.

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