Upload
gilbert-casey
View
225
Download
0
Tags:
Embed Size (px)
Citation preview
The Role of Innovation in US Gulf Coast Competitiveness
The Future of the Gulf Coast Petrochemical Industry
Global Energy Management Institute
University of Houston
April 29, 2005
James H. D’Auria
UOP LLC
Agenda
The competitiveness gap Potential for technology innovations to
improve competitiveness Key technology innovations Examples of options for the USGC The integration conundrum Final thoughts
The USGC Cost of Production Gap:Ethylene Example
North American Ethane Crackers Have Become the High Cost Producers
How Can Technology Innovation Help? Technology can be developed to:
– Make use of lower cost and/or unique feedstocks
– Create feedstock or product flexibility—Hedge—Reduce volatility
– Reduce required capital investment– Make existing assets more efficient– Integrate existing assets to increase
efficiency– Improve product quality
Competitive advantage is gained when technology innovations are linked with the right market or
business circumstances
Alternative Feedstocks to Consider Low Value Refinery/Cracker Streams
– Light Gases– By Product Olefins– Pentanes– Light Cycle Oil– Resid
Remote Gas Coal ? Biomass ???
Basis for US Industry Advantage:• GC Refining Concentration
• Atlantic Basin Stranded Gas • Coal Reserves
• Biomass potential
Key Technology Innovations Use of Alternative feedstocks
– Stranded Gas to Olefins/Polymers— “Mega-Methanol” Plants— Methanol to Olefins
– Clean Coal Refinery- Petrochemical integration
– Petrochemicals from FCC– Olefins Conversion– LCO Conversion– Naphtha optimization
Longer term Breakthrough Technologies
Methanol/MTO Economies of ScaleConstant IRR
0 2,500 5,000 7,500 10,000
Methanol Capacity, MT/d
Met
han
ol P
rice
Req
uir
ed f
or
Tar
get
IRR
MeOH PlantMTO Plant
Mega Methanol Plants Enable Gas to Olefins Projects
MTO on the USGC
$0
$200
$400
$600
$800
$20 $30 $40 $50
Crude Oil Price, $/BBL
Lt
Ole
fin
s C
ash
Cos
t of
Pro
du
ctio
n, $
/MT
US EP Cracker Naphtha Cracker ME Ethane Cracker
MTO on the USGC
* Based on $85/MT methanol from Atlantic Basin Stranded Gas** Based on $100/MT methanol
USGC MTO Becomes Attractive At High Oil Prices
$0
$200
$400
$600
$800
$20 $30 $40 $50
Crude Oil Price, $/BBL
Lt
Ole
fin
s C
ash
Cost
of
Pro
du
ctio
n,
$/M
T
US EP Cracker Naphtha Cracker ME Ethane Cracker
MTO* MTO**
Clean Coal TechnologyCoalCoal
Gasification Synthesis Gas
Methanol
PowerF-T LiquidsSteam, H2
Chemicals
Alternative GasificationFeedstocks:
Petroleum cokeResidbio-residue
Coal to Olefins in the US(@ $40/BBL Crude)
$0
$100
$200
$300
$400
$500
$600
Cas
h C
ost
of P
rodu
ctio
n, $
/MT
E
thyl
ene
Historic US Avg* CTO** ME Ethane
* Based on correlation of ’97-’05 CMAI data: weighted avg. feedstock
** Assumes $125/MT methanol from coal
High Oil Prices Improve Attractiveness of Coal To Olefins
Key Technology Innovations Use of Alternative feedstocks
– Stranded Gas to Olefins/Polymers– “Mega-Methanol” Plants– Methanol to Olefins
– Clean Coal
Refinery- Petrochemical integration– Petrochemicals from FCC– Olefins Conversion– LCO Conversion– Naphtha optimization
Longer term Breakthrough Technologies
Propylene from Refineries
VGO
CrudeOil
CrudeCrudeColumnColumn
C4 and Lighter
Straight Run Gasoline
Kerosene
AGO
VacuumVacuumColumnColumn
Vacuum ResidueVacuum Residue
FCCFCC
PropylenePropylene
Fuel GasFuel Gas
LPGLPG
GasolineGasoline
DieselDiesel
Heavy Heavy Fuel OilFuel Oil
PRUPRU
DownstreamProcessing
UOP 4288K-4Refinery FCC is an Important Source of Propylene
Petrochemicals from FCCP
rop
ylen
e Y
ield
Pro
pyl
ene
Yie
ld
Unit Design and OperationUnit Design and Operation
Max. GasolineMax. Gasoline3 - 5 wt%3 - 5 wt%
GasolineGasoline
Enhanced Enhanced PropylenePropylene5 – 7 wt%5 – 7 wt%
CC33==
GasolineGasoline
High-Severity High-Severity FCCFCC
10 -16 wt%10 -16 wt%
CC22==
CC33==
GasolineGasoline
PetroFCCPetroFCC20 + wt%20 + wt%
CC22==
CC33==
AromaticsAromatics
UOP 4399A-7
Increasing Petrochemical Production
Challenge: Manage Across Traditional Boundaries
RefineriesRefineries
FCC
OlefinOlefin
Recovery
GasGasOilsOils FCC GasolineGasoline
Cycle OilsCycle Oils
LightLightOlefinsOlefins
CC44-C-C88
LPGLPG
CC22==CC33==
OlefinCracking
Olefins Conversion TechnologyNaphtha CrackersNaphtha Crackers
Furnace Product Recovery
CC55/C/C66
Paraffin-RichParaffin-Rich
CC44/C/C55
OlefinsOlefins
CC22==
CC33==
OlefinCracking
NaphthaNaphtha
UOP 4399A-22
• Metathesis: Converts ethylene + C4 olefins to propylene• Olefin Cracking: Converts C4 – C8 olefin streams to propylene + ethylene• Utilize USGC refinery & liquid cracker capacity
ULSDULSD
New catalysis selectively opens rings to upgrade Light Cycle Oil to produce:
–Clean fuels–BTX Aromatics
Environmental Benefits: – Reduces HSFO production– ULS Diesel co-product– ULS Gasoline co-product
Ring Opening to Upgrade LCO
LCOLCO
LCO RingOpening
High OctaneHigh OctaneGasolineGasoline
PetrochemicalsPetrochemicals
UOP 4288A-18
USGC Opportunity: Pool LCO Streams
Naphtha Optimization
UOP 3994J-10
NaphthaCracker
CatalyticReformer
Iso/normalseparation
Full Full Range Range
NaphthaNaphtha
CC55-C-C11 11 nn-paraffins-paraffins
CC77+ +
Ethylene yield 30% higher than with conventional naphtha
Same propylene yield
Increased octane-barrel production
• Economic value of ~ $30 MM/year • Requires close integration of olefins & gasoline production
Concentration of refining capacity in USGC provides basis for competitive advantage
Technology innovations that cross traditional boundaries can create economic value and cost advantage - “On Paper”
Barriers to integration are many:– Increasing complexity/Limiting flexibility– Conflicting objectives– Mixing disparate cultures– Difficult technical issues– Diffusing business focus (What business
are we in?)
The Integration Conundrum
Need to develop integration enablers•Business management practices•Advanced process technology•Information technology
Longer Term Technology Outlook Continuing investments are needed to develop
new chemistries Example areas of focus:
– Catalytic Naphtha Cracking– Paraffin Activation
— Ethane + Benzene to EB— Direct Propane to PO, CAN, Acrylic Acid— Pentanes to Higher Value Chemicals
– Direct Methane to Methanol– Renewables as Feedstocks (carbohydrates,
biomass)
The Role of Technology: Final Thoughts
Technologies are available today to take advantage of lower cost feeds
– Remote gas, coal, refinery by-products Future technology advances will continue to come via
process engineering & catalysis innovations New technology needs to be matched with the right
situations to provide a competitive advantage. For USGC:
– Integration with refining, power– Ability to increase propylene production– Pooling of by-product streams– Access to Atlantic basis remote gas, US coal
Can we improve the risk-reward balance?– Cost to develop & commercialize new technology– First user risks & rewards– Government regulations & incentives– Market uncertainties
THANK YOU