The Greener FCC – Movingfrom Fuels to Petrochemicals

HARVEY MCQUISTON AND STEVE SHIMODATECHNIP STONE & WEBSTER PROCESS TECHNOLOGYGPS – LISBON, NOVEMBER 14-16 2016

The FCC Alliance

The FCC Alliance is a coalition of 4 companies dedicatedto the promotion, development, and improvement of fluidcatalytic cracking technologies to efficiently producesafer, cleaner, and higher quality petroleum basedproducts for the benefit of our society.

The GreeningTrend of FCC

►Since 1940’s, the primary role of FCC hasbeen to produce gasoline from VGO

►In the 80’s the high price of crude pushedthe FCC into processing more resid (morelight products per barrel of crude)

►Newer FCCs are larger, more efficient, andon stream longer

►Preferred feedstock today is either resid orhydrotreated VGO

►The current trend is the petrochemicalapplication of FCC to make propylene infavor of gasoline

Greening Trend of FCC

Global Trend for Propylene by Source:

2013 Production~ 80 Million tons (Mta)

11%Other

FCC34%

SteamCracking

55%

2022 Production~ 125 Million tons (Mta)

SteamCracking40%-45%

25%-30%Other

FCC30%-35%

Fuels vs Propylene Based FCCs

Fuels FCC (38)

Propylene FCC (22)

61 grassroots units licensed the FCC Alliance since 1981 22 propylene based FCC licensed since 2005 80% of FCCs licensed since 2005 are propylene based

Future Petrochemical Role for FCC

►Estimated incremental demand forpropylene from FCCs by 2022 isexpected to be 11 Mta

►Flexibility to shift FCC operationbetween max gasoline and maxpropylene

►Feedstock flexibility – tight oil tohydrotreated VGOs to resids

►Integration of both new andexisting FCCs with petrochemicalfacilities will greatly enhanceeconomics

The FCC route to propylene

Resid FCC to Propylene – R2P

►2–stage regeneration for heatbalance

►Cracking of resid feed in primaryriser

►2nd riser for light naphtha recyclecracking

►Propylene yield over 12 wt%

►Ethylene yield of 2 wt% can berecovered economically withintegration of steam cracker

►Butylenes can be oligomerized toC8s & C12s and recycled to riser toincrease propylene

Deep Catalytic Cracking to Propylene

►For high hydrogen content feeds (VGO andmild resids)

►Lower overall hydrocarbon partial pressurecompared to FCC

- Low operating pressure

- High dilution steam

►Utilizes both riser and bed cracking

►Higher riser severity for primary cracking

►Secondary cracking of recycled C4s andlight naphtha

►Propylene yields 15 to 20 wt%

►Ethylene yields of 5 wt%

HS-FCC Process

FeedInjection

Regenerator

Stripper withstructuredpacking

Catalyst - ProductSeparator

DownflowReactor

CatalystDownflow

CatalystUpflow

►“High-Severity” FCC forpropylene

►Millisecond downflowreaction system for higherselectivity

►Both VGO and resid feeds

► Developed by JX Energyand Saudi Aramco incooperation with King FuadUniversity

►Exclusively licensed byTechnip and Axens

Pre-Commercial HS-FCC Unit

►JX refinery: 382,000 bpsd

►Location: Mizushima, Japan

►3,000 bpsd HS-FCC unit

►Started up in March 2011

►Objectives achieved

►Yields confirmed

►Scale up criteria confirmed

►Operability & reliabilitydemonstrated

►2 commercial units are in designphase

Propylene From Catalytic Cracking

Pro

pyl

en

eY

ield

%w

t

9

11

13

15

17

19

21

23

25

Resid to PropyleneHigh Olefins FCC

HS-FCC

DCC

LightResids

Hi-H2VGO

VGOHeavyResids

Typical Cracking Yields by Unit Design

Weight%

FCC FCC RFCC DCCSteam

Cracking

Unit Design GasolineGasolinew/ ZSM-5

HighOlefins

HighOlefins

EthaneFeed

Ethylene 0.5-1.5 0.5-1.5 1-2 2-6 45-50

Propylene 3-5 6-9 10-12 15-25 1-3

Butylenes 6-8 6-8 12-14 13-17 1-2

Gasoline 45-55 50-55 28-35 22-40 1-3

Typical Operating Parameters

OperatingParameter

FCC FCC RFCC DCCSteam

Cracking

Unit Design GasolineGasolinew/ ZSM-5

HighOlefins

HighOlefins

EthaneFeed

Reactor Temp., °C 500-535 530-550 540-550 505-575 760-870

Residence Time, Sec. 2 2 2 10 0.1-0.2

Pressure, Barg 1.7 1.7 1.7 1 1

Catalyst to Oil Ratio 7-8 8-9 9-10 15 -

Dilution Steam, wt% 1-6 1-6 9.5-10.5 20-30 30-80

Recycle cracking No No Yes Yes -

Complementary Processes for MorePropylene

►PetroRiserSM

- Dedicated 2nd riser for recycle of olefin-rich streams(light naphtha, C4s, and/or oligomerate

►Omega Process- Licensed by Asahi Kasei Chemicals

- Converts olefin-rich C4-C5 stream to propylene

►FlexEneTM Process- Licensed by Axens

- Oligomerization olefin-rich C4s to C8 to C12oligomerate that can be recycled to FCC and crackedto propylene

►Metathesis- Combines ethylene with butylenes to make propylene

DCC Unit with FlexEneTM

LIGHT NAPHTHA

SLURRY

FLEXENETM

PRUPRU

ERUERU

PGP

PRIME G+

LCO

DCC

Unit

DCC

Unit

PGE

HEAVY NAPHTHA

C8 and C12

OLIGOMERS

HYVAHLATB

R2P Unit with PetroRiserSM

LT NAPHTHA TOPETRORISERSM

Grassroots Unit Study

Grassroot Unit Study Components

R2P Baseline grassroot petrochemical-centric resid FCC

DCC Upper bound for petrochemical-centric FCC

ERU Addition of Ethylene Recovery Unit (ERU) for upgradingoff-gas to petrochemical feedstock

FlexEneTM Indirect conversion of C4 olefins to propylene viaoligomerization and cracking

Omega Direct conversion of C4 and C5 olefins to propylene

Grassroot Study Definitions

Case ID 1 2 3 4 5

Description R2P+

FlexEneTM

DCC(Stand-alone)

DCC+

FlexEneTM

DCC+

ERU

DCC+ERU+

FlexEneTM

Cracking Unit R2P DCC DCC DCC DCC

Capacity, bpd 30,000 30,000 30,000 30,000 30,000

C2-C5 Conversion Units:

ERU YES YES

FlexEneTM YES YES YES

C2=, kTA 0 0 0 68 74

C3=, kTA 237 283 326 283 326

Note: Contribution of FlexEneTM and Omega are considered to be similar

Grassroot Study EconomicEvaluation

Case ID 1 2 3 4 5Description R2P

+FlexEne

TM

DCC(Stand-alone)

DCC+

FlexEneTM

DCC+

ERU

DCC+ERU+

FlexEneTM

Cracking Unit R2P DCC DCC DCC DCC

C2-C5 Conversion Units:

ERU YES YES

FlexEneTM YES YES YES

TIC(Total), $MM 356 358 383 458 483

Revenue, $MM/Year 862 885 908 943 971

Feed Cost, $MM/Year (734) (734) (734) (734) (734)

Opex, $MM/Year (54) (55) (62) (69) (80)

EBITDA, $MM/Year 75 96 112 139 157

Payback Period, Years 4.8 3.7 3.4 3.3 3.1

IRR(1) 13.3 16.9 18.2 18.9 20.0

(1) Design & construction = 4yrs, no contingencies & fees, operating years = 20yrs, tax rate = 0%, nodepreciation tax shield, zero salvage value.

(2) Contribution of FlexEneTM

and Omega are considered to be similar.

Grassroot Unit Study Summary

13.3

16.9

18.218.8 18.9

20.020.5

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

21.0

22.0

23.0

24.0

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

R2

P+

Flex

Ene

DC

C(S

tan

da

lon

e)

DC

C+

Flex

Ene

DC

C+

Om

ega

DC

C+

ERU

DC

C+

Flex

Ene

+ER

U

DC

C+

OM

EGA

+ER

U

IRR

,%

EBIT

DA

,$M

M/Y

ear

EBITDA, $MM/Year IRR, %

FCC Revamps Opportunities forPropylene

24-oct.-16 23

DCC Mode of operation is within design range

Comparison of Operating Parameters

FCC Revamp to DCC

ParameterFCC

OperationDesignRange

DCCMode

Feed Rate, Mtpa 1.20 0.6 – 1.20 1.03

Reactor Temp, °C 522 520 - 540 530

Reactor, kg/cm²g 1.26 1.20-1.50 1.20

Steam to Riser, kg/h 7600 - 12,600

Yield shift to higher value products

Operating Data vs. Study Estimates

FCC Conversion to DCC

Mode of Operation FCC DCC

Feed Rate, Mtpa 1.20 1.03

Dry Gas, wt% 2.91 5.07

C3=, wt% 6.01 14.50

Total LPG, wt% 20.27 34.49

Gasoline, wt% 48.78 39.00

Conversion, wt% 84.52 85.70

FCC Revamp with PetroRiserSM

►Dedicated 2nd riser for recycle oflight naphtha, C4s, and/oroligomerate (FlexeneTM)

►Utilizes high riser temperature withpost-riser quench for incrementalpropylene and ethylene

►Catalyst cooler effect

►Can be added to existing FCC orRFCC

►HSFCC reaction module suitable foraddition to existing FCC regenerator inparallel with existing reactor

►Simultaneous fuels and petrochemicaloperation possible

►Shared catalyst and heat balance withexisting unit

►Catalyst cooler effect to existing unit

►Incremental reactor effluent can beprocessed in parallel recovery section

HS-FCC Revamp Example

Revamp Unit Study

HSFO

KeroseneJet A 1

Naphtha HDS

VDU

DieselHDS

Sat Gas Plant

FCCU

Delayed Coker

CDU

AtmGasoil

HCGO

Kerosene

Diesel

Naphtha

KeroseneHDS

Butane

PropaneFuel Gas

Alkylation

Isomerization

Slurry

LCOFCC

Gasoline

LCGO

Heavy Sour Crude

C3=

BENZOUT

FCCHTU

LPG

Fuel Oil

Petroleum Coke

C5/C6Isomerization

Reformer

Alkylation

Jet A 1

ULSD

C3=

Propane

Gasoline

VGOHTU

ULSD

FCC PP

Alkylate

Pre-Revamp Base Case

VACUUMTOWER

HSFO

KeroseneJet A 1

Naphtha HDS

VDU

DieselHDS

Sat Gas Plant

FCCU

Delayed Coker

CDU

AtmGasoil

HCGO

Kerosene

Diesel

Naphtha

KeroseneHDS

Butane

PropaneFuel Gas

Alkylation

Isomerization

Slurry

LCOFCC

Gasoline

LCGO

Heavy Sour Crude

C3=

BENZOUT

FCCHTU

LPG

Fuel Oil

Petroleum Coke

C5/C6Isomerization

Reformer

Alkylation

Jet A 1

ULSD

C3=

Propane

Gasoline

VGOHTU

VacuumTower

Tight Oil

ULSD

VacuumBtms

FCC PP

Alkylate

Option 1: Petro-RiserSM

ATB TO NEWPETRORISERSM

NEW PREFLASHTOWER

Option 2: FCC Conversion to DCC

VACUUMTOWER

Shifts from Fuels to Plastics

Base Option 1 Option 2

Petro-Riser X

FCC to DCC Conversion X

Total Potential Plastics, kTA 73 104 453

Total Fuels, BPD 126 103 92

Gasoline 75.17 53.82 46.13

Jet+Diesel 50.27 48.54 45.31

Translate into Big Economic Impact

Base Option 1 Option 2

Petro-Riser X

FCC to DCC Conversion X

Delta Gross Margin, $MM/Yr Base 194 235

Delta CAPEX (From Base) 100 275

Payback period, months 6.2 14.0

Conclusion

►Propylene demand continues to grow at arate of 4% and FCC is expected to contribute30% of new incremental demand.

►Most new FCC units will be based onpropylene production and integrated withpetrochemical facilities, but these new unitswill not completely meet expected demandalone.

►The latest FCC technology can also beapplied to existing FCC units to shift fromfuels to petrochemical mode of operation,producing not only a higher margin productslate, but also displacing some of the fuelsproducts that contribute to greenhousegases.

Thank you

HARVEY MCQUISTON AND STEVE SHIMODATECHNIP STONE & WEBSTER PROCESS TECHNOLOGYGPS – LISBON, NOVEMBER 14-16 2016

The material appearing in this presentation is for general information purposes only. Technip S.A. and its affiliated companies ("Technip")assume no responsibility for any errors or omissions in these materials. TECHNIP MAKES NO, AND EXPRESSLY DISCLAIMS ANY,REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE MATERIALS CONTAINED IN THEPRESENTATION, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.Under no circumstances shall Technip, the other sponsors, presenters and any of their respective partners, officers, directors,employees, agents or representatives be liable for any damages, whether direct, indirect, special or consequential, arising from or inconnection with the use of materials and information contained in the presentation. The materials contained in this presentation may notbe reproduced, republished, distributed, or otherwise exploited in any manner without the express prior written permission of Technip.