convert residue to petrochemicals - World Petroleum Council

International Conference on "Refining Challenges & Way Forward"in New Delhi (16 – 17 April, 2012)CONVERT RESIDUE TOPETROCHEMICALSApril 16, 2012Debasis Bhattacharyya(bhattacharyad1@iocl.co.in)

Global primary energy outlookGlobal petroleum product demandCrude quality projectionsLight olefins & their derivativesCONTENTSEmerging refining scenario & challengesResidue upgradation technologiesTechnology for resid to light olefins –INDMAXSummary2

MBOE/dayGLOBAL SUPPLY OF PRIMARY ENERGY:2010 & 20351201008081101 102Source: World Oil Outlook, 201190696054402002315610 92021020102035• As of 2010, total primary energy supply was 235.4 MBOE/day• Projected total primary energy supply in 2035 at 355.9 MBOE/day

% ShareGLOBAL SUPPLY OF PRIMARY ENERGY:2010 & 203540353025352928.4 28.525.3232015105066.322.945.712.92010 2035• Coal dominates the global energy supply followed by oil in 2035• Contribution of oil would remain significant throughout

MB/dayGLOBAL PETROLEUM PRODUCTS DEMAND:2010 & 20354035302520151050372010 2035272521911 9678Source: World Oil Outlook, 20119 10117* Includes refinery fuel oil** Includes bitumen, lubricants, waxes, still gas, coke, sulfur, direct use of crude oil, etc.• Total products demand in 2010 was 86.8 Million Barrels/day• Projected products demand in 2035 at 109.7 Million Barrels/day5

% ShareGLOBAL PETROLEUM PRODUCTS DEMAND:2010 & 20353533.3302524.624.729.0201510510.49.8 8.36.67.57.610.6 11.45.910.4201020350Global demand for Residual Fuel would decrease from 10.6% in 2010 to5.9% in 20356

GLOBAL CRUDE QUALITY OUTLOOKo APISulfur, wt%Source: World Oil Outlook, 20117

API GravityCRUDE OIL YIELDS100%Lighter90%80%70%LPGLSRNaphthaKero60%Diesel50%40%Gasoil30%20%Heavier10%Resid0%LowCossack API=47.3API=27.6 ANS API=21.3 Maya API=15.3 MereySulfur = 0.3% Sulfur = 1.1% Sulfur = 3.5% Sulfur = 2.5%Refinery ComplexityHigh8

CRUDE QUALITY SCENARIO IN 2035• Shares of synthetic crudes derived from oilsands would increase by 7% API < 10; Bottom > 60 wt%• Condensate crude shares would increase by 1%• Lighter sweet crude shares would drop by 4%• Medium crude shares would drop by 2%• Heavy crude shares would drop by 3%Source: World Oil Outlook, 20119

EMERGING REFINING SCENARIOOil continues to be major energy source up to 2035Era of easy oil almost over – future crudes to be heavy & extraheavyIncreasingly stringent automotive fuel & lube specifications‣ Product finishing (HDS, Hydrotreating, Lube Hydro-finishing etc.)‣ High hydrogen demand in refineryDeclining FO demand‣ Dedicated facilities for residue upgradationEnvironmental regulations to be in increasing order‣ Elaborate ETP, Particulate arrestor, SOX and NOX control facilitiesFluctuations in crude & product prices resulting in frequentadjustment to refining operationsHigh investment & operating costIncreasing competitionIntelligent Refining – Key for Survival10

PROPYLENE SOURCES & DERIVATIVES306Steam crackersFCCSources64Others2 1249PolypropylenePropyleneoxideAcrylic acidAcrylonitrileSource: NexantDerivatives3862CumeneIsopropanolOthers11

ETHYLENE SOURCES & DERIVATIVES74 5 2NaphthaEthanePropaneSources2854ButaneGas OilSource: NexantDerivatives137Others146 6 (LDPE, LLDPE, HDPE)Ethylene oxide/ EthyleneGlycolEDC/PVCPolyethylene54Alpha OlefinsEthyl benzene/StyreneOthers12

GLOBAL PROPYLENE SOURCES & PRODUCTIONSource 2005 2010 2015Steam crackers, MT 43459 53743 66318FCCU, MT 20107 23138 28349Dehydrogenation, MT 1777 2721 2776Propylene derivatives growth rate till 2015• Polypropylene : 5.5%• Propylene Oxide : 4.3%Source:CMAI- World ethylene demand is expected to cross 160 MMTPA by 2015 as perGlobal Industry Analysts.- Asia-Pacific, Europe and North America - major consumers of ethylene(over 87% of the global ethylene market)Source: www.pudaily.com 13

PROPYLENE DEMANDC3= demand growth rate ~5% pa - Increasing gapbetween C3= demand &supply from steam crackerProduce propylene from alternateroute that gives high propylene/ethylene ratio14

RESID UPGRADATION PROCESSES• Carbon Rejection Technologies• Deep Cut Vacuum Distillation (Increase VGO cut point >590 o C)• Solvent De-Asphalting (SDA)• Thermal Cracking (Visbreaking, Delayed Coking, etc.)• Catalytic Cracking (RFCC)• Gasification• Hydrogen Addition Technologies• Fixed Bed Catalytic Cracking• Ebullated Bed Catalytic Cracking• Ultrasonic Treatment Technologies• Cavitation Induced Hydrocarbon Cracking15

FCC as ResidProcessing Option

PROBLEMS WITH RESID PROCESSING IN FCCNiSV &NaBasic N2More H 2 , Dry Gas & CokeSOx Emmission, ‘S’ in ProductZeolite DestructionZeolite Acidity NeutralizationAromaticsMore Coke & Low conversionCon. CokeHigh Regen temp, Low Cat/OilHigh catalyst consumption to maintain activity17

METAL POISONING Nickel (Ni) & Vanadium (V) deposit on outer layer of catalystparticles and catalyze dehydrogenation & condensationreactions More Dry gas - can limit WGC capacity More Coke - can limit coke burning capacityHigher regn. temp.Lower cat/oil ratioLoss in conversion Ni is about four times more active than V as dehydrogenationcatalyst V has both inter & intra- particle mobility V destroys zeolite structure resulting reduced catalyst surfacearea & activity 18

Surface Area, m 2 /gMETAL POISONINGMain Contaminant metals: V, Ni, NaV - Reduces catalytic activity & enhance DG, cokeNi - Enhances DG, hydrogen, coke by dehydrogenationNa - Reduces catalytic cracking200150Ni10050VFeNa5000 10,000 15,000Metal, ppm19

TECHNOLOGICAL GAPDeteriorating crude quality producing more residue per barrel of feedDeclining demand of fuel oilGrowing gap between propylene demand & supply from steam crackerDelayed coking• Highly suitable for processing heaviest residues• LPG /light olefins yield: low; Naphtha – poor quality• High yield of low value fuel grade cokeFluid catalytic cracking (FCC/RFCC)• LPG yield : ~ 15-20 wt%• Propylene in LPG : ~ 28-35 wt%• Gasoline octane (RON) : ~ 90• Limitation in processing resid feedstocks‣ CCR up to 5 wt%; Metal poisons (Ni+V) up to 35 PPMConventional refining processes have limitations in converting heavyfeedstock to high yield of light olefins & high octane gasoline20

INDMAXA breakthrough technology for direct conversionof Residue to high yields of Light olefins & Highoctane gasoline rich in BTX

INDMAX TECHNOLOGY‣ High severity operation• Riser outlet temperature ( > 550C)• Catalyst to oil ratio (wt/wt) ( >12)CCR INDMAX Metals‣ High steam to feed ratio ( > 0.1)‣ Low delta coke - Excellent heat integration• Relatively lower regenerator temp. (650-730C)‣ Proprietary tailor-made catalyst formulation• Higher propylene selectivity• Superior metal tolerance• Lower coke makeExcellent coke selectivity & metal tolerance of Indmax catalyst allowshigh severity operation22

Hardware - Simple configurationINDMAX TECHNOLOGY Simple configuration of circulating fluidized bed riser – reactor –stripper – regenerator configuration Single riser - multiple diameter Single stage regenerator with total combustion - No CO boiler No catalyst cooler (Feed CCR 2 %)• Feed: Wide range of feedstocks from heavy residue, fuel oil, gasoil & naphtha‣ Up to 11 wt% feed CCR‣ (Ni+V) up to 100 ppm• Products: LPG yield Propylene in LPG Ethylene in Dry gas: 30-55 wt% on feed: 40-55 wt%: 45 – 60 wt% High octane gasoline : RON > 95 (Tolune + Xylene) in Gasoline upto 40 wt% 23

CATALYTIC CRACKING REACTIONSParaffinsCrackingParaffins + OlefinsOlefinsCrackingLPG OlefinsCyclization NaphthenesIsomerization Branched Olefins H Transfer Branched ParaffinsH Transfer ParaffinsCyclizationCokeCondensation CokeDehydrogenation CokeNaphthenesCrackingOlefinsDehydrogenation Cyclo-olefins Dehydrogenation AromaticsIsomerization Naphthenes with different ringsAromaticsSide chain crackingTrans alkylationUnsubstituted aromatics + olefinsDifferent alkyl aromaticsDehydrogenation Polyaromatics Alkylation CokeCondensationDehydrogenationCondensationHydrogen transfer Naphthene + Olefin Aromatic + Paraffin24

MODE OF CATALYST REGENERATIONCoke burning reactionsC + 1/2O 2 CO (∆H = - 2200 kcal /kg)CO + 1/2O 2 CO 2 (∆H = - 5600 kcal /kg)H 2 + 1/2O 2 H 2 O (∆H = - 28900 kcal /kg)ModeTotalCombustionCoke on regenerated catalyst, wt% < 0.05 > 0.05Effective catalyst activity Higher LowerRegenerator temperature, oC Higher LowerCO in flue gas, ppm < 1000 > 1000Requirement of CO Boiler No YesChances of Afterburning Lower HigherPartialCombustion25

Products toFractionatorHEAT BALANCEFlue Gasto WHRUHeat lossRegeneratorHeat of cokecombustionReactorHeat lossStripperSteamAirHeat ofreactionsRiserSteamFeedpreheaterFeed26

COMMERCIALIZATIONCommissioned 2000 BPSD plant inJune 2003 for processing residue(CCR: 4 wt%)Products: Propylene/LPG, High octaneGasoline componentCurrently in regular operationSuccessfully processed feed CCR of 5wt% & demonstrated 17 wt% propyleneyield (once through)Flexible to operate in MS or light olefinmaximization modeSuccessfully commissioned at GuwahatiRefinery in June’03 - Smoothestcommissioning in IOC’s FCC start-upINDMAX can handle high CCR, non-hydrotreated feed withattractive LPG / light olefins yield27

PERFORMANCETest runAfter start upTest runCurrent operationFeed rate, MT/hr 12.3 11Heavy feed, wt%API gravityCCR, wt%Sulfur, wt%8018.13.740.3891.518.55.50.43Coker Gasoline feed, wt%API gravitySulfur, wt%20660.148.565.30.12Riser top temp, °C 588 580Regen dense temp, °C 700 706CRC, wt% 0.05 0.06Propylene, wt% 17.1 17.3CLO, wt% 3.5 7Gasoline RON > 98 > 9828

COLLABORATION WITH LUMMUSAgreement exist between IndianOil & Lummus Technology Inc., USA forworldwide marketing & licensing of INDMAX TechnologyIndianOil R&D• Provides Basic Process Design data/information to LummusLummus• Worldwide marketing & licensing of INDMAX Technology• Prepares & provides the Process Design Package to the clients• Required know-how, experience & credibility in building commercial largeFCC units• Possesses design know-how of FCC internals / subsystemsMicro-jet feed injector, Packed bed catalyst stripper, Direct coupled cyclone, etc.29

INDMAX-FCC REACTOR-REGENERATORDirect-CoupledCyclonesReaction Riser(Short Contact Time)CycloneContainmentVessel (CCV)Direct-CoupledCyclonesCycloneContainmentVessel (CCV)MGStripperMGStripperTurbulentRegeneratorBedTurbulentRegenerator BedExternal RegeneratedCatalyst HopperMicro-Jet FeedInjection Nozzles30

INDMAX - CONTINUAL DEVELOPMENTImprovement oflight olefins yieldSetting up 85000BPSD unitCollaboration withLummus for globalmarketing & licensingScale up &CommercializationProcess development &pilot plant demonstrationINDMAX TechnologyYields of light olefins withparaffinic VGO feed (wt%):Propylene: 27Butylenes : 15Ethylene : 14Highly attractive yields for integration with petrochemicals 31

INDMAXBongaigaon(15000 BPSD)Guwahati(2000 BPSD)INDAMX FCC Currently beinglicensed by Lummus based onBasic Process Design fromIndianOilParadip(85000 BPSDIndianOil’s proven INDMAX technology can meet Refiner’s objectives ofpropylene maximization & residue upgradation in cost effective manner32

SUMMARYA novel technology for direct conversion of residue to high yieldsof light olefins & high octane gasoline rich in Toluene & Xylenedeveloped, designed and demonstrated indigenously Feed CCR up to 11 wt% Very high Vanadium tolerance of catalyst (feed Ni+V up to100 ppm) Excellent heat balance due to low delta coke & high cat/oilratio Simple hardware configuration for residue conversion‣ No feed furnace, CO boiler & catalyst cooler (upto 6% CCR)INDMAX provides unique opportunity to address the underlyingissues in the emerging refining scenario33