Olefins Production Will Infant Technologies Change … Production – Will Infant Technologies Change the Geriatric Industry? Agenda 1. The role of steam cracking as the backbone for

© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 1

Olefins Production – Will Infant Technologies Change the

Geriatric Industry?

Agenda

1. The role of steam cracking as the backbone for many industrial sectors

2. Other conventional processes using conventional feedstocks

3. Impact of recent innovations to the conventional processes

4. Potential impact of game-changing technologies in the next decade

Steven Kantorowicz

Director – Hexabase Strategic Advisory E: [email protected]

M: +65 8321 1213

mailto:[email protected]






Agenda


Geriatric Industry?


• Ethylene and propylene are mainly produced via thermal cracking of gas or liquid

feeds in cracker complexes with feedstocks ranging from ethane through crude oil

o The prices are set by global energy prices, regardless of the process used

Commercial Processes

Available for License

Products Comments

Ethylene Propylene

Steam Cracking (Thermal) √ √ C3- / C2- ratio can be varied in a range

No Butadiene produced from C2O feed

Methanol to Olefins √ √ MeOH is cracked; H2O recycled

Methanol to Propylene √ Used when there is no C2- market

FCC Offgas Recovery √ √ High severity FCC – with ZSM5 etc

Propane Dehydrogenation √ Licensed by Lummus, UOP & TKIS

Metathesis √ Ethylene + n-butenes Propylene

Catalytic Olefin Cracking √ √ Example: K-COTTM licensed by KBR

Ethanol Dehydration √ Bio-based raw materials

1. The Role of Steam Cracking

Backbone for Many Industrial Sectors


• Worldwide, there are 270 of these cracker complexes in operation

o Total ethylene capacity is in excess of 150 Million tons per annum

• Four grassroots world-scale crackers are required per year just to keep up with the

expected global ethylene demand growth of ~4%

US Gas Crackers Under Construction Capacity, mta Location Planned Startup

ExxonMobil 1,500,000 Texas 2017

Chevron Phillips 1,500,000 Texas 2017

Dow Chemical 1,500,000 Texas 2017

Formosa Plastics 1,200,000 Texas 2018

Oxychem/Mexichem 544,000 Texas 2018

Shintech (Shin-Etsu) 500,000 Louisiana 2019

Sasol 1,500,000 Louisiana 2019

Axiall/Lotte 1,000,000 Louisiana 2020

TOTAL US Grassroots Capacity Addition 9,244,000




• The second wave of US Ethylene expansion based on shale gas is in planning



US Gas Crackers Under Evaluation Capacity, mta Location Planned Startup

Total SA 1,000,000 Texas 2021

Shell 1,500,000 Pennsylvania 2022

ExxonMobil/Sabic 1,800,000 Gulf Coast 2022

Formosa Plastics 1,200,000 Louisiana 2022

Braskem/Odebrecht 1,100,000 West Virginia 2022

PTT/Marubeni 1,000,000 Ohio 2022

Williams 1,500,000 Louisiana 2023

Badlands NGL/Vinmar 1,500,000 North Dakota N/A

Aither Chemicals 272,000 West Virginia N/A

Appalachian Resins 275,000 Ohio N/A

TOTAL US Grassroots Capacity Addition 11,147,000

BUT … these US plants will produce only ethylene




Percentage of Ethylene from US is set to spike

after many years of declining

Ethylene




Large Crackers Have Large Upstream Infrastructure

• Roads

• Ports

• Refineries

• Power / Utilities

Skilled labor pools are required!

Large Crackers Have Large Downstream Infrastructure

• Polyolefins (PE, PP, etc)

• Propylene Oxide

• Glycols

• Aromatics (Benzene; Toluene; Xylenes)

• Cumene / Phenol / BPA /

• Polystyrene

• Polyesters

• Poly Vinyl Chloride

• Butadiene

• Isoprene

• Pyrolysis Gasoline

• Fuel Oil

• Others

Economies of Scale Problems Must be Addressed

Rubbers

Logistics / Storage

Feasibility

Study


Yields, wt% Ethane Propane FR Naphtha Light AGO

Hydrogen 3.93 1.56 0.91 0.63

Methane 3.82 25.30 15.70 11.20

Acetylene 0.43 0.64 0.78 0.47

Ethylene 53.00 39.04 30.80 26.50

Ethane 35.00 3.94 3.30 26.50

MAPD 0.06 0.53 1.00 0.80

Propylene 0.89 11.34 14.00 13.40

Propane 0.17 5.00 0.28 0.25

C4s 1.59 5.39 8.70 8.80

C5+ Complicated Structures

1.11 7.62 24.53 34.55

Cracker feeds are:

• Ethane, LPG, or “dry gas”

• Liquids – NGLs, Naphtha, Raffinate

• Heavy Liquids – Heavy Naphtha, Diesel, Gas Oil, Condensate

Many Crackers routinely use 10 or more different feeds

Depending on seasonal pricing and availability

C4 and C5 yields vary significantly based on feed and cracking severity

• Butadiene 40-50% of C4’s

• Isoprene 14-18% of C5’s

The trend is huge multi-billion$ Grassroots and Expansion Petrochemical Complexes

Take advantage of refinery integration and the individual processing units

• PETRONAS Project RAPID in Malaysia

• Dow/ Saudi Aramco Sadara in Saudi Arabia

• ExxonMobil Parallel Train Expansion in Singapore

Change in feed and operating severity impacts

supply volumes to the downstream units

Once Through

7 March 2014 8



Cracker Feedstock Optimization

http://upload.wikimedia.org/wikipedia/commons/c/c2/Ethylene-CRC-MW-3D-balls.png

http://upload.wikimedia.org/wikipedia/commons/b/bf/Propylene-3D-balls.png

http://en.wikipedia.org/wiki/File:Isobutylene-3D-balls.png

http://en.wikipedia.org/wiki/File:Methane-CRC-MW-3D-balls.png

http://upload.wikimedia.org/wikipedia/commons/7/7e/Cis-but-2-ene-3D-balls.png

http://upload.wikimedia.org/wikipedia/commons/8/8b/Acetylene-CRC-IR-3D-balls.png

http://upload.wikimedia.org/wikipedia/commons/3/3c/Ethane-A-3D-balls.png

http://en.wikipedia.org/wiki/File:Allene-CRC-IR-3D-balls.png

http://upload.wikimedia.org/wikipedia/commons/e/e4/Propane-3D-balls-B.png


Olefins Chains

1. Ethylene

2. Propylene

3. Butadiene

Aromatics Chains

4. Benzene

5. Toluene

6. Xylenes

Paraxylene

Orthoxylene

Metaxylene Toluene Bedding, Boats, Fabric, Food

Casing, Furniture, Nylon, Textiles,

Clothing, Upholstery, Varnish

Benzene Car Headlamps, Cutlery, Insulation,

Computer Cases, Nylons, Tents,

Sunglasses, Dishes, Rope

Xylenes Beverage Bottles, Automotive

Applications, Carpets, Fabrics,

Electronics, Lumber, Solvents

Ethylene IV Blood Bag, Detergent bottles,

Engine Coolant, Milk Jug, Signs,

Credit Cards, Pipes, Polyester

Propylene Adhesives, Appliances, Paints,

Diapers, Battery Case, Carpets,

Housewares, Coatings, Furniture

Butadiene Tires, Hoses & Belts, Automotive

Trim, Toys, Luggage, Latex

Paints, Kitchen Appliances,

Rubber

Petrochemical

Derivatives Are

All Around Us;

We Use Them

Every Day

Images: ClickArt 400,000

1

2

3

4

5

6



Petrochemical Derivatives – How we Use Them









Agenda


Geriatric Industry?


Ethylene Plant Complex

Monomers Primary Derivatives Secondary Derivatives End Uses

1

2

3

“On-purpose

Propylene”

High Severity

FCC

2. Other Conventional Processes

Using Conventional Feedstocks

Chemical Value Chains


Monomers Primary Derivatives Secondary Derivatives End Uses

BTX Recovery

4

5

6

Chemical Value

Chains






Propylene Production via Conventional Feeds




Propylene Production via Conventional Feeds

• Not very long ago, all of these

technologies were considered to

be step-out and unproven!

• In many circumstances, they now

set the global price of propylene

• The price-setter changes

depending on feed prices


Gasification

Technology

Refineries

Chemical

s

X To Liquids

Ammonia

Oxochemicals: Butanol, Ethylhexanol

Hydrogen; Fuel Cells

Steam

Power

Methanol

Formaldehyde

MTBE

Acetic acid

Amine

DME

Urea

Ammonia nitrate/sulfate

Syngas

(H2 + CO)

Power

(IGCC)

Greenfield

Polygen

Refueling

Site repowering

Transportation fuels

Methanation Substitute Natural Gas

Feedstocks • Natural Gas

• Coal

• Pet coke

• Asphalt

• Heavy Oil

• Vacuum Residue

• Pitch

Olefins

Example – Gasification to Chemicals/Fuels/Power

Reliability • Availability

• Contaminants

• Refractory

• Thermocouples

• Erosion

• Licensor Support

Configuration

Selection

Licensor

Selections

Basic

Engineering

EPC

Selection

Monitor

Construction

Startup/

Operation






Agenda


Geriatric Industry?


“Colonel” Edwin Drake (right) in front of the well

Available from the United States Library of Congress Prints and Photographs Division. Under the digital ID cph.3a14109

Wooden Oil Collection Tank

Credit: Drake Well Museum Collection, Titusville PA

Different size barrels were used

Phillips Well

Woodford Well

• The Drake Well was “spud” in 1859

as the first on-purpose well to

produce commercial quantity of

Crude Oil

o It was 22.1 m deep

o Prior to the Drake well, oil-

producing wells in the US were

drilled for salt brine, and produced

oil and gas only as accidental

byproducts

• It produced 12-20 bbls (2-3 m3)/day

• After the price of oil plummeted from

the subsequent production boom, it

was never profitable

• The well stopped producing in 1861

• This is the Tarr Farm, Oil Creek Valley, PA

o The “Phillips Well” (on the right) produced 4,000

BPD in October, 1861 - - - far higher than the

Drake Well!

o The “Woodford Well” (on the left) came in at

1,500 BPD in July, 1862.

• The oil was collected via a simple run-down line

into the open wooden tank pictured in the

foreground

• There are many different-sized barrels in the

background, because barrel size had not yet been

standardized

o This made the statement "oil is selling at $5 per

barrel" very confusing compared to today (a

barrel is 159 liters).

3 Years

• The Permian Basin

(TX) is the world’s

second largest oil

field; estimated

over 70 Billion

Barrels of

recoverable

resources

• The Spraberry /

Wolfcamp … and

Bone Spring, Jo

Mill, Dean, Atoka,

Mississippian and

Cline Discovered

1949

Recent Innovations:

• Fracking

• Directional Drilling

3. Impact of Recent Innovations to the

Conventional Processes Oil Field Development


• The plastics recycle industry has impacted demand somewhat

• Much more is coming

http://www.plasticsmarkets.org/

http://plasticsrecycling.org/

Recent Innovations:

• Forced Recycling

• Separating the Types

Marking

Systems

for Plastic

Products

• Innovations in plastic separation, sorting, washing and de-contamination equipment have made

it possible for mixed rigid packaging plastics to be efficiently collected and recycled

o Bottle to Bottle Recycling – PET and HDPE containers recycled into food grade materials

o Films – Typical products are refuge sacks, damp-proof membranes, garden fencing/furniture

o Waste Electronics – Rigid polymers recycled into new electronics goods

o End of Life Vehicles – Non-metallic parts of scrapped cars sorted with new machinery


Conventional Processes

Evolution of Plastics Recycling





Furnaces

• Very Large, High Efficiency Cracking Furnaces & Recovery

• Configured for feedstock and product flexibility; including ultra heavy feeds

• Can be easily expanded for debottleneck projects

• Maximum on-stream time (start-up, ease of operation, maintenance, training, etc.)

Energy Reduction

• Focus on Energy Reduction Opportunities

• Maximum heat recovery from the cracker hot fractionation section

• Minimum compression in the cryogenic section

• Process “pinch” during project engineering phase

Integration

• Process and Utility Integration Concepts • Cracker process and stream integration with adjacent refineries, aromatics plants, central utility

facilities and downstream derivative units lower operating costs

• Maximum value upgrade of every molecule leaving the complex

Environment

Investment

• Investment Issues

• Economy of scale – up to the limitations of furnaces and major rotating equipment

• Lower complexity – piece count reduced/ optimized versus energy consumption

• Integration with downstream derivative units; BASF’s “Verbund” concept

• Reduce Environmental Impacts

• Minimize solid, liquid, vapor emissions throughout the integrated Complex

• Decrease the carbon footprint – has monetary value in many locations

• Reduce NOx emissions from furnace/boiler burners and Gas Turbines Environment




Standalone Refinery and Petrochemical Facilities

Fuel Products Chemical

Feedstocks

Refinery

Chemical Plant

Evolved To

Refinery Chemical Plant

Further Evolved To … Chem Project 1

Chem Project 2 Refinery Chemical Plant

Chemical Feedstocks

Idemitsu Chiba Refinery & Petrochemicals Complex



The Evolving Refinery/Petrochemical Interface –

Physical and Commercial Integration


Maximize and Share Total Profits

C2 – C4 Monomers

Aromatics / Solvents

Crudes

Other Process

Inputs

Ethane/Natural Gas

(Methanol)

Alternate Feeds

(Methanol)

Wastes

R e c o v e r y & S e p a r a t i o n s

Fluid

Cat

Cracking

Olefins

Recovery/

Separation

Reforming Aromatics

Processing

Resid/Fuels

Conversion

Processes

H2

Recovery

H2

Generation

Other

Refining/

Chemicals

Steam

Cracking Cogen

Motor Gasoline (Mogas)

Diesel

Other Ref/Chem Prod

Syngas

Steam & Power

Gasification

Kerosene / Jet Fuel

LPG

Fuel Oil (Minimum)

Storage/ Logistics

Naphthas

Derivatives

Derivatives

Derivatives

C

r

u

d

e

U

n

i

t

s Support Services

Dehydro Derivatives



Interface Has Evolved to Full Integration


• The concept of “direct cracking” of crude was patented by Esso in 1970



Evolution of Crude Cracking

US Patent # 3,617,493

2 November, 1971

Esso Research & Engineering Co

Naphtha

Cut

Gas Oil

Cut

Fuel Oil

o Limited commercialization has been demonstrated by

several operating companies and licensors

Licensor /

Operator

Crude Cracking

Status

KBR Design Available

Linde Design Available

Lummus Design Available

Technip Design Available

ExxonMobil Demonstrated

LyondellBasell Demonstrated

Sabic Patents

Shell Patents

o Licensors have some

commercial experience

with Condensate and other

heavy feeds but not crude

~40 years to Commercialize!


Category Pros of Crude Oil Cracking Cons of Crude Oil Cracking

Investment Cost

Total cost of the Project is not fully

known by Licensors or EPC

Contractors

Lower than a conventional

configuration of: Refinery + Cracker +

Derivative Units + OSBL

Cracker cost is higher due to the increased size and complexity of the

following sections relative to a conventional design

o Pyrolysis Furnaces

o Recovery Section

o Fuel Oil handling

o OSBL

Product Yield

Total Crude Oil feed to a conventional

Steam Cracker will be lower than an

integrated Refinery / Steam Cracker

Complex for production of a set

amount of ethylene

Higher feed consumption per ton of ethylene produced

Yields of ethylene and by-products will vary significantly depending

on which Crude Oil is cracked; requires investment for flexibility

Yields of by-products from Crude Oil cracking are uncertain due to

limited data from commercial units; requires even more flexibility

Crude Oil cracking results in a low overall production of Aromatics

compared to integration with a Refinery

Crude Oil cracking will produce a significant amount of “tail” plus

heavy fuel oil; viable economic utilization is necessary

A Refinery / Cracker complex can be configured to be in Fuel

balance; it is not known whether the Crude Oil Cracking Complex can

be configured to be in Fuel balance

Must have a viable/economic use for the crude tail produced

Technology

Available from all Cracker licensors

Also developed in-house by several

sophisticated operating companies

such as ExxonMobil, LyondellBasell

and Shell

The level of feed pre-treatment required to enable Crude Oil cracking

must be determined for each potential feed compared to the well-

known requirements for conventional feeds to a cracker

o Desalter

o Contaminants Removal

Energy Consumed

per ton of ethylene

The total energy consumed will be

lower since Refinery units that require

high energy inputs are not required

The “Specific Energy Consumption” of the Crude Cracking Complex

will be higher than a Conventional Cracker due to:

o Differences in design of the Cracking Furnace effluent system

o Lower ethylene yield per ton of fresh furnace feed

Run-length

Between Plant

Turnarounds

If fully understood and managed

properly, plant run- length may not be

reduced

Run-length of a Conventional Cracker is five years between

turnarounds while that of a Crude Oil Cracking Complex has a risk of

being measurably shorter


Conventional Processes Crude Cracking


• Conventional Metathesis

o On-purpose propylene production

• 1-Hexene via C4- “self metathesis”

o Comonomer Production Technology (CPT) 1. Butene Isomerization and Distillation

2. Butene Autometathesis and Autometathesis Recovery

3. 3-Hexene Isomerization and Distillation

o Commercially demonstrated at Tianjin Petrochemical

Company



+

2

Ethylene 2-Butenes Propylene

Metathesis

Licensed by

Lummus






Agenda


Geriatric Industry?


• The interaction between chemical engineering and biology has a long tradition in:

o Brewing

o Wine making

o Baking

o Lactic acid fermented milks

Well known processes based on microorganisms and enzyme extracts

• The use of bio-based raw materials has created a new relationship between the Chemical

Industry and agriculture, including forestry

o Accurate “Carbon Accounting” for all the agriculture inputs must be included when

evaluating bio-based products

4. Potential Impact of Game-changing Technologies

in the Next Decade Bio Production of Everything

Bio Ethylene

Bio Butadiene

Bio Propylene

Bio Propylene Glycol Bio 1,3 Propanediol

Bio Isoprene

Bio Butanol

Bio Fuels

Public Domain,

https://commons.wikimedia.org/w/index.php?curid=2109652

Since 10,000 BC!


• The two main routes to bio ethylene and bio propylene are

o Biochemical – typically fermentation

Typical bio-based feedstocks are corn, sugarcane, and beets

o Thermochemical – involving gasification of natural feeds

Feedstocks including grass, agricultural wastes and corn, which are carbon rich and can be

gasified to produce syngas

• In either case, access to suitable feedstocks is critical to keep production costs in-line

• The capital cost for fermentation is significantly lower compared to the gasification route

• Bio based ethylene/ PE production from Ethanol

o Ethanol dehydration to ethylene has been available commercially for decades

o The PE process does not change if the ethylene is bio-based

Reaction Quench Distillation 95% Bio-ethanol Ethylene

Heavies Caustic Fuel

Steam Waste Water

Acid Catalyst


in the Next Decade

Bio Ethylene


• Propylene glycol is the second largest propylene oxide consumer after polyol production.

• Compared to propylene oxide-based propylene glycol, the bio-propylene glycol has a

lower carbon footprint and utilizes by-products from other processes as feedstocks

making it an attractive alternative thereby reducing the demand for propylene oxide

• Glycerine by-product from bio-diesel production is also used to produce propylene glycol,

which is known as bio-propylene glycol; three of the bio-propylene glycol plants in

operation are:

o Global BioChem in China, which came online in 2007 with a capacity of 200 kta, uses

corn as its feedstock

o Archer Daniels Midland (ADM) started up a 100 kta bio-propylene glycol plant in

Illinois, USA in 2010

Glycerine, a by-product from biodiesel production, is used as feedstock

o Oleon’s (Avril Group) 200 kta plant located in Ertvelde, Belgium started up in 2012.

The raw material used is glycerine from fats and oils which are by-products from

oleochemical production. The process, which is licensed by BASF, requires fewer

steps than the conventional propylene oxide-based process

Recent Bio-based Developments


in the Next Decade

Bio Propylene Glycol


Bio Butadiene

Announced the

successful production

of Butadiene Rubber

on 16/02/2016

Bio Isoprene

Bio Butanol

o Produces and sells n-butanol

o Anaerobic fermentation of biomass

o Current biomass includes corn

• Facility in Jilin Province

of Northeast China

• Facility in Luverne MN

produces isobutanol

o Uses a modified strain of E.Coli

o Biomass of corn, sugar and beets

o Funding from Cargill and Total SA

Bio 1,3 Propanediol

Susterra® Propanediol o A bio-based, petroleum-free diol

o The process uses corn glucose

Recent Bio-based Developments


in the Next Decade


• CO2 conversion to liquids using sunlight + non-potable water + catalyst

o Joule’s engineered bacteria as living catalysts convert CO2 to a specific molecule of interest, including

ethanol and hydrocarbons that comprise diesel, jet fuel and gasoline

Joule Sunflow®-E, solar-derived ethanol

Joule Sunflow®-D, diesel fuel

Joule Unlimited Inc, Bedford MA


In the Next Decade

CO2 Conversion to Liquids

Claims to be profitable at $50/Bbl Crude Oil


Source: IEA Bioenergy Task 42 Biorefinery


in the Next Decade The Bio Roadmap


• Methanol

• DME

• Ethanol

• Mixed Alcohols

• Fischer Tropsch

Liquids

• C1 – C7 Gases

• Benzene

• Toluene

• Xylenes

• Cyclohexane

• Styrene

• Biophenyls

• Phenol

• Substituted

Phenol

• Catechols

• Cresols

• Resorcinols

• Eugenol

• Syringols

• Coniferols

• Guaiacols

• Vanilin

• Vanilic Acid

• DMSO

• Aromatic Acids

• Aliphatic Acids

• Syringaldyde

• Aldehydes

• Quinones

• Cyclohexanol

• β-keto adipate

• Carbon Fiber

Fillers

• Polymer

Extenders

• Substituted

Lignins

• Thermoset

Resins

• Composites

• Adhesives

• Binders

• Preservatives

• Pharmaceuticals

• Polyols

Potential Products from

Lignin

Syngas

Products Hydrocarbons Phenols

Oxidized

Products Macromolecules

• It is an extremely abundant raw material contributing as much as 30% of the weight and 40% of

the energy content of lingo-cellulosic biomass

o Currently the main use of lignin is for energy in pulp mills since lignin is unwanted in the pulp

The Lignin Chain


in the Next Decade


• Oxidative Coupling of Methane to Ethylene

2 CH4 + O2 → C2H4 + 2 H2O + Heat

o The benefits of OCM have been known since the early 1980s

o Methane’s abundance and price (about half the price of ethane) is spurring efforts to use it directly as

a feedstock for ethylene and other chemicals, rather than burning it as fuel

o Past efforts did not result in a viable catalyst with performance needed for commercialization

• Standard Acetylene Absorption

• Unique Liquid Phase Acetylene Hydrogenation

• Demonstration Plant – Braskem in La Porte TX

o 350+ tons per year ethylene

• O2 sources – air, enriched air, or pure oxygen

Drives other plant operations

• Separations

• Recovery

Two Examples of

Technology Offerings


in the Next Decade

http://siluria.com/






Agenda

Conclusions & Recommendations


Geriatric Industry?


How will you select the optimum configuration

that will make money during downturn cycles?





Are there potential threats from disruptive new

technologies that you must consider?



Should you constantly review your options?

Are there potential threats from disruptive new

technologies that you must consider?





Business Performance Throughout the

Project Lifecycle – Feasibility Study

• Market Analysis

• Business Strategy

• Price Forecasting

• Supply & Demand

Forecasting

• Insights on

Economics

• Investor Master

Plans and

Decisions

• Crude Oil, Gas &

Feedstock

Selections

• Planning - Linear

Programming &

Modelling

• Corporate Social

Responsibility

Recommendation

• New Technology

Development

(Disruptive?)

• Configuration

Study

• Site/ Plot Area

Requirements

• Local Talent

Assessments

• Infrastructure

Requirements

• Scenario Analysis

Selection

Validation

• Maintenance

Assessment

(Maintainability)

• Operational

Readiness

• Pre-commission &

Commissioning

Start-up Support /

Quality Assurance

• Workforce

Development

• Quality Assurance

• Environmental

Compliance

Strategies

• Contracting

Strategy

• Licensor Technical

Assessment

• Front End

Engineering

Design (FEED)

• Value Engineering

(assets, process,

energy, etc.)

• 2nd O&M

Assessment

• Environmental

Impact

Assessment

• Organizational

Design

• Risk Assessment

and Mitigation

• Engineering,

Procurement &

Construction

(EPC) Support

• Owner’s

Representative

• FEED Quality

Assurance

Review

• Procedures and

Work Process

Development

• Workforce

Development;

Create Job

Performance

Profiles/ Plans

• Regulatory and

Permitting

Liaison

• Risk Assessment

and Mitigation

• Profit Improvement

• Simulation &

Optimization

• Operations and

Maintenance

(O&M) Support

• Reliability,

Availability,

Maintenance

• Business

Transformation

• Training &

Development

• Continuous

Improvement and

Sustainability

Support

• Environmental

Compliance

Support

• Energy Efficiency

• Linear Programming

Audit & Vector

Generation

OPERATE PLAN DEFINE DESIGN BUILD COMMISSION

Risks Market Cost Overruns Organisational Technical

Feasibility Study

Feasibility Study Scope

Configuration Study/Selection

Project Development Production


Keys to Successful Project Development

Basis - Identify viable integration options and technologies based on project-specific details

Fundamentals - Utilize Capital Project Excellence and Operational Excellence throughout the project lifecycle

Methodology - Keep up with the latest licensor and vendor offerings

Tools – Undertake rigorous simulations of the configurations being studied

Experience – Familiarity based on diverse industry experience

Project Evaluation & Execution

Process Technology and Technology Licensor Comparisons

Ranking Based on Detailed Methodology – Technical and Commercial Considerations

Implementation Issues – Planning; FEED; PMC Services; Construction; Sustained Operation

Conduct Preliminary Economic Screening

Current

Market Size

Raw Material

Costs

Product

Prices

SWOT &

Barriers

Opportunity

Ranking

Step

1

Step

2

Configuration Study / Licensor Selection


Facilitate interfaces between

organization stakeholders

Strengthen Operating

Team cohesiveness

Sourcing, Orientation and

Team formation-

aligned with Project timeline

Set Team goals and practices to ensure

sustainable high performance

Develop employee support programs. Build the Team’s

Relationship Skills

Optimize Team Leaders’ contributions, capability and performance Talent

Management & Succession Planning

A Frequently Ignored Aspect Organization Development & Effectiveness

Change Management

Ensure all processes in place to achieve…

• Clarity of roles

• Consistency in application of policies, rules & procedures

• Greater resourcefulness and resilience for meeting

challenges of supervision

• Alignment to the values and transition activities

• Integration & co-operation across business units

Operational Excellence

Compelling Reason for Change?

Operational Excellence • Zero Lost Time Accidents

• 100% On-steam Factor

• Minimum Energy Consumption

• Maximum Profitability

Ongoing


• The key to success is effective enterprise integration, achieved through

project development that includes rigorous evaluation and optimization of:

o Feedstocks – processing a wide variety of feedstocks, and selecting the

feed slate and technologies that generate the highest value for the entire

complex. …“Manage the Molecules”

o Products – choosing the highest-value combination of fuels, lubes and

chemical commodity and specialty products for the integrated complex,

with each produced at competitive-scale facilities

o Costs – capturing economies of scale through common systems and

services in areas where there are similar needs

o Capital – means capturing the benefits of joint facilities planning,

engineering, construction and shared infrastructure

o Human Resources – using a unified approach to recruiting and

subsequent personnel development via rotational assignments

The best consider all of these and mitigate the risks

Project Risks to Consider and Avoid

Risks Market Cost Overruns Organisational Technical


Does anyone have a question?


Thank You

Documents

Olefins Production Will Infant Technologies Change … Production – Will Infant Technologies Change the Geriatric Industry? Agenda 1. The role of steam cracking as the backbone for