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© 2015 UOP LLC. A Honeywell Company All rights reserved.
A New Look at Integration Opportunities
Refining-Petrochemical IntegrationStan S. Carp
Sr. Manager, Configuration and
Process Consultancy
29/07/2017 6th Petrochemical Conclave Gandhinagar, Gujarat, India
Refinery capacity expansion trends in the future will continue to follow shifts in product demand
1
UOP 7831D-1
Refining capacity net additions
(Million barrel per day)
-0.3
0.5
-2
-1
0
1
2
2005-2015
Latin America
0.6 0.7
-2
-1
0
1
2
2005-2015
North America
0.60.3
-2
-1
0
1
2
2005-2015
CIS
-1.3
-0.5-2
-1
0
1
2
2005-2015
Europe
2.2 1.3
-2-10123
2005-2015
Middle East
0.1 0.1
-2
-1
0
1
2
2005-2015
Africa
5.7
2.2
0123456
2005-2015
China
1.7 0.8
-2
-1
0
1
2
2005-2015
India
0.30.8
-2
-1
0
1
2
2005-2015
Rest of Asia
Source: IHS
HONEYWELL Confidential
Expansion into Petrochemicals Improves Project Returns
PetChem provides a financial hedge against volatility in crude markets
3
HONEYWELL - CONFIDENTIAL
Shale Oil Innovation Impact on Investment Environment
Petrochemicals enables NOCs to claw back value over crude
4
HONEYWELL - CONFIDENTIAL
Primary Petrochemical Landscape
Figuring out the ideal market vertical & feedstock is a unique exercise for every firm
5
HONEYWELL - CONFIDENTIAL
Improve Naphtha Molecule Management: A Recent Example
Over-constraining boundaries can lead to missed opportunities
6
• Better molecule management led
to
- $244 MM higher NPV
- 5.4% increase in IRR
• Free Cash Flow increased by
$20MM/yr
HONEYWELL - CONFIDENTIAL
Latest Innovations Drive Economic Efficiency
Competitive Advantage Requires Latest Technology
7
HONEYWELL - CONFIDENTIAL
LD Parex Drives the Lowest Cost PX Production
20% Less Energy Consumption than any Competing Technology
8
HONEYWELL - CONFIDENTIAL
LD Parex Value Drives Strong Market Adoption
• Since market launch in 2015, superior value creation has resulted in
7 MMTA of new PX capacity
• Rigorous competitive evaluations have demonstrated:
- 20% lower CAPEX vs crystallization
- 20% lower energy requirement vs crystallization
Be the lowest cost producer in India
Location PX Capacity, KMTA Decision Year Year S/U
East Asia 600 2015 2018
East Asia 2000 2016 2019
East Asia 2000 2016 2019
East Asia 1000 2016 2019
East Asia 1200 2017 2019
HONEYWELL - CONFIDENTIAL
Routes to Increase Heavy Naphtha for Aromatics Production
After we make the naphtha, then we have to leverage it correctly
10
HONEYWELL - CONFIDENTIAL
FCC Role In Petrochemical Complex is a Balanced Approach
Balance FCC and PDH for best overall economics
11
FCC has some Key strengths:
Makes Olefinic C4-C6 to help meet Euro Gasoline specs
Feed source for Alkylate and MTBE
C5+ Olefins provide needed non-aromatic octane
Coupled with Aromatics Complex, produces heavier FCC gasoline for MOGAS blend pool
Enables low cost propylene production to a point; don’t drive beyond production cost of PDH. There is a lot of propane availability in the Middle East
Supplemental feed to steam cracker
FCC also has some Weaknesses:
Does not produce high quality reformer feed for aromatics
Lack of H2 addition limits yield flexibility
HONEYWELL - CONFIDENTIAL
Light Paraffin Dehydrogenation Enables Many Value Chains
Options include both dedicated and mixed-feed
applications
12
HONEYWELL - CONFIDENTIAL
Summary
Regional fuel demands will support local refining investments
Petrochemical integration enables higher quality investment
Latest technology advances provide a step-change in value creation over those just licensed 5 years ago
Leveraging latest available technologies is critical to maintaining a competitive position
New Petrochemical complexes will need refinery upgrades for Heavy Naphtha supply
Maximize the return on your R&P Integrated investment through:
– Understanding of market dynamics
– Selecting the right technology
– Optimal upfront configuration
14