Changing Refinery Configuration Changing Refinery Configuration for Heavy and Synthetic Crude for Heavy and Synthetic Crude

ProcessingProcessingGary BrierleyGary Brierley

UOP LLCUOP LLC

© 2006 UOP LLC. All rights reserved.©© 2006 UOP LLC. All rights reserved.2006 UOP LLC. All rights reserved. UOP 4525A-01

Why Should I Even Think About Why Should I Even Think About Running Synthetics?Running Synthetics?

Oil sands deposits in Western Canada are hugeOil sands deposits in Western Canada are huge–– 1.7 trillion barrels total oil in place1.7 trillion barrels total oil in place–– 174 billion barrels of recoverable oil with 174 billion barrels of recoverable oil with

existing technologyexisting technology–– Cumulative production since 1967 Cumulative production since 1967

only 4 billion barrelsonly 4 billion barrels

Recoverable reserves could Recoverable reserves could increase dramatically with increase dramatically with improved technologyimproved technology

UOP 4525A-02

BitumenBitumen--derived Crudes Replacing derived Crudes Replacing Declining Conventional CrudesDeclining Conventional Crudes

from Western Canadafrom Western Canada4,0004,0003,5003,5003,0003,0002,5002,5002,0002,0001,5001,5001,0001,000

5005000019901990 19951995 20052005 20102010 20152015 20202020

Upgraded Bitumen/SCOUpgraded Bitumen/SCONonNon--Upgraded BitumenUpgraded BitumenConventional HeavyConventional HeavyConventional LightConventional Light

Tho

usan

ds o

f Bar

rels

per

Day

Tho

usan

ds o

f Bar

rels

per

Day

20002000

UOP 4525A-04

Source: Source: PurvinPurvin & & GertzGertz, 2005, 2005

Synthetic Crudes and BitumenSynthetic Crudes and BitumenBlends Available in MarketBlends Available in Market

BitumenBitumenProductionProduction

UpgradingUpgrading

HeavyHeavyCrudeCrude

RefineriesRefineries

MediumMediumCrudeCrude

RefineriesRefineries

LightLightCrudeCrude

RefineriesRefineries

LightLightSCOSCO

SynDilBitSynDilBitHeavyHeavySCOSCO

LightLightSyntheticSyntheticCrude OilCrude Oil

(SCO)(SCO)

CondensateCondensateRefiningRefining

DilBitDilBit

SynBitSynBit

(Mining or In(Mining or In--Situ)Situ)

Source: Source: PurvinPurvin & & GertzGertz, 2004, 2004

UOP 4525A-05

Diluent Shortages will Make Diluent Shortages will Make SynBitsSynBitsthe Dominant Heavy Crude from the Dominant Heavy Crude from

Western CanadaWestern Canada2,5002,500

2,0002,000

1,5001,500

1,0001,000

500500

0019951995

Tho

usan

ds o

f Bar

rels

per

Day

Tho

usan

ds o

f Bar

rels

per

Day

20002000

20012001

20022002

20032003

20042004

20052005

20062006

20072007

20082008

20092009

20102010

20152015

20202020

SynBitSynBitDilBitDilBitConventional HeavyConventional Heavy

UOP 4525A-06

Source: Source: PurvinPurvin & & GertzGertz, 2005, 2005

Western Canadian Select (WCS)Western Canadian Select (WCS)Will Become a New Benchmark CrudeWill Become a New Benchmark Crude

Became available in January 2005Became available in January 2005–– Currently at 350 KBPDCurrently at 350 KBPD–– Expected to reach 500 KBPD by 2008Expected to reach 500 KBPD by 2008

Each batch contains:Each batch contains:–– CondensateCondensate–– Hydrotreated synthetic crudeHydrotreated synthetic crude–– Heavy conventional crudeHeavy conventional crude–– Medium conventional crudeMedium conventional crude–– Cold Lake bitumenCold Lake bitumen–– Athabasca bitumenAthabasca bitumen

UOP 4525A-07

BitumenBitumen--derived Crude Composition derived Crude Composition Different from Conventional CrudesDifferent from Conventional Crudes

0%

20%

40%

60%

80%

100%

WTI ArabLight

ANS LloydBlend

BowRiver

DilBit WCS SCO

Resid Vacuum Gas Oil Distillate Naphtha/LPG

0%

20%

40%

60%

80%

100%

WTI ArabLight

ANS LloydBlend

BowRiver

DilBit WCS SCO

Resid Vacuum Gas Oil Distillate Naphtha/LPG

vol-%

UOP 4525A-08

Processing BitumenProcessing Bitumen--derived Crudesderived CrudesAffects All Areas of the RefineryAffects All Areas of the Refinery

Bitumen BlendsBitumen BlendsHigh resid contentHigh resid content

–– Coking or SDA Coking or SDA requiredrequired

High contaminant High contaminant levellevel

–– HighHigh--severity severity hydrotreatinghydrotreating

High VGO content High VGO content after resid conversionafter resid conversion

Synthetic CrudesSynthetic CrudesNo resid contentNo resid content

–– Blending with other Blending with other heavy crudesheavy crudes

LowLow--quality distillatequality distillate–– HighHigh--severity severity

hydrotreatinghydrotreating

Large volume of lowLarge volume of low--quality VGOquality VGO

–– FCC feed FCC feed pretreatmentpretreatment

UOP 4525A-09

Processing BitumenProcessing Bitumen--derived Crudesderived CrudesAffects All Areas of the RefineryAffects All Areas of the Refinery

Bitumen BlendsBitumen BlendsHigh resid contentHigh resid content

–– Coking or SDA Coking or SDA requiredrequired

High contaminant High contaminant levellevel

–– HighHigh--severity severity hydrotreatinghydrotreating

High VGO content High VGO content after resid conversionafter resid conversion

Synthetic CrudesSynthetic CrudesNo resid contentNo resid content

–– Blending with other Blending with other heavy crudesheavy crudes

LowLow--quality distillatequality distillate–– HighHigh--severity severity

hydrotreatinghydrotreating

Large volume of lowLarge volume of low--quality VGOquality VGO

–– FCC feed FCC feed pretreatmentpretreatment

UOP 4525A-09

Additional VGO Conversion Required!

Increasing Distillate DemandIncreasing Distillate DemandWill Change Refinery Product SlateWill Change Refinery Product Slate

Distillate demand growing Distillate demand growing faster than gasoline demandfaster than gasoline demandIncreased dieselization of Increased dieselization of U.S. vehicle fleetU.S. vehicle fleetVGO conversion will shift VGO conversion will shift from FCC to hydrocracking from FCC to hydrocracking for distillate productionfor distillate production

2.402.40

2.002.00

1.601.60

1.201.20Rat

io (V

olum

etri

c B

asis

)R

atio

(Vol

umet

ric

Bas

is)

20002000 20022002 20042004 20062006 20082008 20102010 20122012 20142014YearYear

USA G:D Ratio ForecastUSA G:D Ratio Forecast

Source: Source: PurvinPurvin and and GertzGertz 2005 GPMO2005 GPMO

UOP 4525A-03

Adding 25% Synthetic VGOAdding 25% Synthetic VGOReduces FCC YieldsReduces FCC Yields

0%

10%

20%

30%

40%

50%

60%

70%

80%

Brent Brent + Sweet Blend Brent + Sour Blend

Crude Blend

LPG Gasoline LCO CSO

0%

10%

20%

30%

40%

50%

60%

70%

80%

Brent Brent + Sweet Blend Brent + Sour Blend

Crude Blend

LPG Gasoline LCO CSO

UOP 4525A-10

BitumenBitumen--derived derived VGOsVGOs are Hydrogen are Hydrogen Lean and Contaminant RichLean and Contaminant Rich

Lt. Arabian Lt. Arabian Cold Lake Cold Lake Athabasca Athabasca CokerCokerPropertyProperty VGO VGO VGOVGO VGOVGO HGOHGO

Gravity, Gravity, °°APIAPI 22.722.7 16.316.3 14.214.2 11.411.4Sulfur, wtSulfur, wt--%% 2.102.10 3.103.10 3.773.77 4.994.99Nitrogen, wppmNitrogen, wppm 820820 13801380 18541854 40324032Hydrogen, wtHydrogen, wt--%% 12.4712.47 11.3811.38 10.8010.80 10.4310.43Total Aromatics, Total Aromatics, volvol--%% 5858 6060 6969 7676

UOP 4525A-13

Integration of Hydroprocessing and Integration of Hydroprocessing and FCC Operation is the Key to FCC Operation is the Key to

Processing BitumenProcessing Bitumen--derived Crudesderived Crudes

DieselDiesel

GasolineGasoline

FCC Feed Hydrogen Content Must be OptimizedFCC Feed Hydrogen Content Must be Optimized

HDSHDS FCCFCC

UOP 4525A-11

What is the Right HydrogenWhat is the Right HydrogenContent for FCC Feed?Content for FCC Feed?

11.411.4 11.611.6 11.811.8 1212 12.212.2 12.412.4 12.612.6 12.812.8 1313 13.213.2 13.413.4 13.613.6 13.813.8

Hydrogen Content, WtHydrogen Content, Wt--%%

4848

5252

5656

6060

6464

6868

7272

Gas

olin

e Y

ield

, G

asol

ine

Yie

ld, V

olV

ol-- %%

EbullatedEbullated--bedbedGas OilGas Oil

CokerCokerGas OilGas Oil

HydrocrackerHydrocrackerBottomsBottoms

VacuumVacuumGas OilGas Oil

UOP 4525A-12

Tougher Feeds

Tougher Feeds -- Higher N

PV

Higher NPV

FCC Feed FCC Feed PretreatPretreat Economics Economics Improve as Feed Quality WorsensImprove as Feed Quality Worsens

700700

200200

00BrentBrent Brent +Brent +

Sweet Sweet SynSyn..Blend Blend

Brent +Brent +Sour Sour SynSyn..

BlendBlend

Arab LightArab Light Arab +Arab +Sweet Sweet SynSyn..

BlendBlend

Arab +Arab +Sour Sour SynSyn..

Blend Blend

100100

300300

400400

500500

600600Inc Op Costs, $MM/yrInc Op Costs, $MM/yr ISBL Costs, $MMISBL Costs, $MM NPV, $MMNPV, $MM

UOP 4525A-14

FCC Feed PretreatingFCC Feed Pretreatingis Not Always the Right Solutionis Not Always the Right Solution

FCC capacity still limited by high VGO FCC capacity still limited by high VGO content of bitumencontent of bitumen--derived crudesderived crudesHighHigh--quality distillate fuels quality distillate fuels cannot be produced in an cannot be produced in an FCC unitFCC unit

UOP 4525A-15

Hydrocracking Required to Convert Hydrocracking Required to Convert Incremental VGO and ProduceIncremental VGO and Produce

Right Product MixRight Product MixDieselDiesel

GasolineGasolineUnionfiningUnionfining™™ FCCFCC

DieselDiesel

GasolineGasoline

UnicrackingUnicracking™™

FCCFCC GasolineGasoline

UOP 4525A-16

Is the OnceIs the Once--throughthroughUnicracking Process the Right Choice?Unicracking Process the Right Choice?

Higher yields of naphtha and distillateHigher yields of naphtha and distillate

Higher quality FCC feedstockHigher quality FCC feedstock

Flexibility to adjust conversion Flexibility to adjust conversion for seasonal demandfor seasonal demand

UOP 4525A-17

OnceOnce--through Unicracking Process Produces through Unicracking Process Produces FCC Feed with High Hydrogen ContentFCC Feed with High Hydrogen Content

RR--11RR--22 NaphthaNaphtha

KeroseneKerosene

Heavy DieselHeavy Diesel

FCC FeedFCC Feed

6060

6464

55

1212

1717

3030

61.561.5

16 mm Smoke Point16 mm Smoke Point

45 Cetane No.45 Cetane No.

UOP 4525A-18

HH22

FeedFeed

00

3030

Conversion, wtConversion, wt--%%

Cetane IndexCetane Index

Smoke Point

Smoke Point2525

2020

1515

1010

55

002020 4040 100100

8080

7070

6060

5050

4040

3030

Conventional VGO FeedConventional VGO Feed

Ker

osen

e Sm

oke

Poin

t, m

mK

eros

ene

Smok

e Po

int,

mm

6060 8080

Die

sel C

etan

e In

dex

Die

sel C

etan

e In

dex

Increased Conversion Produces Increased Conversion Produces HigherHigher--quality Fuelsquality Fuels

UOP 4525A-19

SeparateSeparate--hydrotreat Configurationhydrotreat ConfigurationProvides FlexibilityProvides Flexibility

RR--11

RR--22 NaphthaNaphtha

KeroseneKerosene

Heavy DieselHeavy Diesel

FCC FeedFCC Feed

6060

9595

1111

1616

88

3030

3030

23 mm Smoke Point23 mm Smoke Point

57 Cetane No.57 Cetane No.

3030

Independent Control of Distillate Independent Control of Distillate and FCC Feed Qualitiesand FCC Feed Qualities

UOP 4525A-20

HH22

FeedFeed

ULSDULSD

CoCo--feedfeedHH22

VGOVGOFeedFeed

HTRx

HCRx

EHS

FractionationFractionationAMINE

SEP

PTRx

FCC FeedFCC Feed

Enhanced HotEnhanced HotSeparatorSeparator

Advanced PartialAdvanced Partial--conversion Unicracking conversion Unicracking (APCU) Integrates FCC Feed (APCU) Integrates FCC Feed

Pretreatment with ULSD ProductionPretreatment with ULSD Production

UOP 4525A-21

Unicracking Process is the Right Unicracking Process is the Right Choice for Converting Choice for Converting

Incremental VGOIncremental VGOOptimizes FCC feed hydrogen contentOptimizes FCC feed hydrogen contentProduces highProduces high--quality distillate fuels to meet quality distillate fuels to meet growing demandgrowing demandDiesel produced can meet all ULSD specsDiesel produced can meet all ULSD specsProduct slate can be seasonally adjustedProduct slate can be seasonally adjustedSmall incremental capital cost to upgrade from Small incremental capital cost to upgrade from FCC feed pretreating to Unicracking processFCC feed pretreating to Unicracking process

UOP 4525A-22

SummarySummary

BitumenBitumen--derived crudes will be an increasing derived crudes will be an increasing crude component for northern US refinercrude component for northern US refinerSignificant processing implications will Significant processing implications will prompt both resid and VGO prompt both resid and VGO hydroprocessing conversionhydroprocessing conversion‘‘IntelligentIntelligent’’ hydroprocessing hydroprocessing solutions will be required to solutions will be required to cost effectively accomplish the cost effectively accomplish the upgrading of synthetic crudes. upgrading of synthetic crudes.

UOP 4525A-23

UOP 4525A-24