© 2018 UOP LLC. A Honeywell Company All rights reserved.
Maximizing Profitability with High Residue ConversionHoneywell UOP Uniflex™ TechnologyGary R. Brierley
19 February 2018 Honeywell UOP ME-TECH SeminarDubai, UAEUOP 8080F-0
Current Marine Bunker Demand by Region1
9
43 22
12 19
63 89
14 34
20
71
NA LA EUR
6
CIS
3
AFR ME AP
6
2015
RFO
Dem
and,
MTP
A
ProductionOtherBunkers
Source: IHS
Residual Fuel Oil Demand
• Marine bunkers represents a high proportion of residual fuel demand• Marine Bunkers is major outlet for RFO in key segments of Asia Pacific
(45%), Middle East (24%), Latin America (24%) and Europe (60%)• Over Abundance of Residual Fuel Oil in CIS and EUR: Calls for conversion
UOP 8080F-1
MARPOL Annex will have Worldwide Effects on High Sulphur Fuel Oil (HSFO) Demand and Price
2
• Significantly reduced HSFO use for bunkering as a result of new regulations
• Surplus residue expected after residue conversion and power generation usage
• Will significantly impact product price differentials in 2020
• HSFO expected to be priced at significant discount after 2020 compared with 2016 (~40% lower) -50.00
-40.00
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2040
Ultra-low sulfur diesel LS Bunker (0.5 % S)ECA MGO (0.1 % S) Gasoil 0.1% sulfurResidual fuel oil 1% Residual fuel oil 3.5%
Product Price, $/BBL
Price Recovery Assumes Ships Will
Install ScrubbersSource: IHS
UOP 8080F-2
Refinery Decision Dilemma3
How long should I wait? • Ship owners strategy? • Wait for others to move and join the herd?
What should I do?• Sell Bunker into HS fuel oil market• Convert HS Bunkers to distillates / gasoline• Convert HS fuel to LS Bunkers (0.5% S)
UOP 8080F-3
Refinery Options to Upgrade HS Fuel4
Uniflex Units Give Highest NPV Based On Our Analysis
Conversion Options• Slurry bed process such as Uniflex™ process
‒ Good payback• Ebullated bed process
‒ Limited conversion• Delayed coking process
‒ Similar capex. Lower payback.
Treating Options
• Desulphurise HS bunkers with process such as RCD Unionfining™ process
‒ Limited product value uplift
• Process VR in new SDA and desulphurise DAO
‒ Lowest capex, but still makes some HSFO
UNIFLEX
Uniflex Performance with Integrated Distillate Unionfining™ Unit5
95% conversion : Higher conversion comparable to other residue conversion processes Euro V Diesel : Highest yield of diesel compared to other slurry processes Minimum VGO : Can be accommodated in existing conversion units Naphtha : < 1 wppm S and N Pitch: : Cement Plant, Gasification Unit, Boiler/Kiln, or solidified into pellets
UNIFLEX UNIT(Wt-%)
100
12-15
55-60
8-10
Vacuum Residue Feed
Naphtha
Diesel
VGO to HCU feedCatalyst
H2S, NH3
Gas, LPG
PitchH2
Hydrotreated in Integrated DHT
4 - 6
1-48-11
UOP 8080F-5
UOP Uniflex Unit Including Integrated Hydrotreater6
Integrated Hydrotreater Significantly Minimizes the Number of Pieces of Equipment, therefore Capex is Reduced. External Diesel Streams could be Hydrotreated to Euro 5
Uniflex Fractionation
SectionCLPS
UniflexReactor
FeedHeater
Recycle Gas
Heater
DHTHeater
HydrotreatingReactor
ExternalFeeds
To DHTFractionation
SectionRecycle HVGO fromUniflex Fractionation
Section
CHPS
WHPS
VacuumResidue
Feed
Make-upHydrogen
Catalyst
WLPS
HLPS
HHPS
WLPS
ExternalDiesel
UOP Uniflex Process Licensed Units Update7
Name Location Capacity, MMTA Feeds Start-up
Petro-Canada, Montreal Canada 0.3
Venezuelan, Mexican, North Sea, Cold Lake,
Visbroken VR
1985S/D 2003
NRL, Pakistan Pakistan 0.6 Light Arabian, Pakistani 2020
Shandong Longgang China 1.35 Med Arab, Merey,
Russian Export 2019
Oil Gas Trade CJSC Russia 0.4 SDA Pitch Cancelled
Undisclosed China 0.8 Merey, Russian Export, Shengli Delayed
Undisclosed China 0.9 Arab Light, Russian Export Delayed
Undisclosed China 0.8 Arab Light, Russian Export Delayed
UOP 8080F-7
Uniflex Process - Continuous ImprovementBased on Voice of the Customer
8
Uniflex MC - Further Improvements to a Commercially Proven Process
Uniflex Process Continuous
Improvement
• High conversion to valued products
• Process design for sustained operability and reliability
• Economically efficient catalyst systems, and manufacturing capability
• Economically advantaged disposition for all products
• Robust feed and product characterization
• New catalyst innovations • Process enhancements
Molybdenum-based MicroCat™ CatalystKey Enabling Technology
9
Feed
MakeupH2
Recycle fromFractionation
• Moly on a carbonaceous base• High-activity catalyst allows for
smaller reactors• No proprietary catalyst purchases
‒ Produced at the refinery from raw materials readily available on the open market
• Low injection rate required
MicroCat CatalystPreparation Section
UOP 8080F-9
Two Reactors in Series:Enhanced Reliability and Performance
10
• Higher single-train capacity• Staged conversion
‒No incompatibility issues• Pitch (Vacuum Tower Bottoms) recycle
‒ Lower light ends yield‒ Lower hydrogen consumption‒Heavier product slate
Feed
MakeupH2
Recycle fromFractionation
MicroCat CatalystPreparation Section
UOP 8080F-10
External Reactor Circulation: Low Conversion per Pass, Improved Yields
11
• Low recycle gas rates• Low liquid feed heater duty• Operates in low-foaming regime• Carries solids out of reactor
Also contributes to improvedyield slate
Feed
MakeupH2
Recycle fromFractionation
MicroCat CatalystPreparation Section
UOP 8080F-11
Solids Removal Enables Conversion up to 98%12
• Removes metals, mesophase, beta resins from unconverted pitch
• Individual process steps well proven• Dried solids to metals recovery• Attractive option if environmental
regulations prohibit burning the pitch
Recycle H2
Naphtha
Diesel
C4-
LVGO
Flash Gas
Diesel
SolidsRecovery
UOP 8080F-12
Next Generation Uniflex MC13
no net HVGOFeed
Microcat CatalystPreparation Section
Recycle H2
Naphtha
Diesel
C4-Makeup
H2
LVGO
VTB & Slop Wax Recycle
Flash Gas
Diesel
SolidsRecoveryHVGO
VRMatrix
CatalystMade by
refiner on site
NoQuench or Anti-foam
2 Reactorsw Interstage Sep
Pump-Around
No Heater
UOP 8080F-13
Uniflex MC Process – Enhancement Benefits14
Reduced catalyst addition rate• Injection rate in
ppm of fresh feed• Highly efficient
molybdenum based catalyst
• On-site catalyst manufacturing capability
Reduced CAPEX and OPEX • Smaller reactors• Lower recycle
gas rates• Lower fired
heater duty
Enables 95 to 98 Wt-% conversion (525°C+ material)• 95% base
conversion, 98% conversion with solids recovery option
Improved VTB (Vacuum Tower Bottoms) quality• Low solids
content, low sulfur level, and no iron
• Fungible product (e.g. fuel, low sulfur petcokeor asphalt production)
Solids recovery from VTB • Recovered oil
product quality upgraded, or
• Recycle operation in unit for higher conversion and yields
• Recovered solids to metals recovery
UOP 8080F-14
UOP Heavy Oil Development Center15
• Expanded capabilities to support Bottom of Barrel Technology Development
• New facility for pilot plant expansion at UOP– High throughput Feed Preparation / Fractionation:
• 3 BPD capacity multi-column fractionation unit– Uniflex pilot plant:
• High capacity operation with multiple reactors capable of staged operation
– Solvent De-asphalting (SDA) pilot plant:• Multi solvent capability: Propane, Butane, Pentane
– Flexible Heavy Oil Hydroprocessing pilot plant:• Heavy Oil Technologies fully integrated with UOP
Unicracking™ and RCD and Distillate Unionfining™pilot plants
• Capable of high pressure (5000 psi) operationwith reactor configurable in all Hydrocracking and Hydrotreating modes
UOP 8080F-15
Conclusions16
• HS bunkers, restricted in ships after 1st Jan 2020, will have negative effect on high sulphur fuel oil (HSFO) pricing
• Refineries with significant HSFO production will require profitable residue conversion projects
• For zero HSFO, the Uniflex MC Process provides for conversion at an excellent payback
• Huge R&D effort by UOP with Uniflex MC Process results in a high-conversion design with low catalyst consumption and better pitch quality
UNIFLEX
UOP 8080F-16
17
UOP 8080F-17