Maximize Vacuum Residue Conversion and Processing Flexibility

with the UOP Uniflex™ Process

Hans Lefebvre UOP LLC, A Honeywell Company

© 2012 UOP LLC. All rights reserved.

XVIII Foro de Avances de la Industria de la Refinación

11 and 12, July, 2012 Mexico City, Mexico

UOP 5831-1

Impact of Global Crude Oil and Natural Gas Prices

150

120

100

90

60

0 Ga

s &

Oil

Pri

ce

($/M

MB

TU

)

Oil P

rice

($/B

BL

)

Natural gas price has not risen as quickly as crude oil

This favours upgrading because heavy fuel oil competes with gas, whereas transportation fuels are linked to crude oil price

This offers an increased residue conversion margin uplift

The widening differential favours “Hydrogen Addition”, rather than “Carbon Rejection”, due to:

− Increased product values

− Decreased H2 manufacturing costs

25

20

15

10

5

0 1990 1995 2000 2005 2010

Natural Gas

Crude Oil

25

20

15

10

5

0

1990 1995 2000 2005 2010

Delta

-5

$/M

MB

TU

Source: BP Statistical Review of World Energy 2011 UOP 5831-2

1990 – 2010 History

By 2010 – fuel oil had declined to only 15%

In 1970, 80, 90 – Fuel Oil was 50, 40, 30% of Distillates Demand

By 2020 – fuel oil is likely to be only 10% of distillates demand

Global Oil Product Demand (Heavy Fuel Oil and Distillates)

Millio

n B

arr

els

Pe

r D

ay

40

30

20

10

0 2000 2005 2010

Middle Distillates

Light Distillates

Heavy Fuel Oil

1995

Source: BP Statistical Review of World Energy 2011

UOP 5831-3

0

100

200

300

400

500

600

700

2000 2002 2004 2006 2008 2010

Mexico’s Oil Market

Pemex’s strategy is to reduce imports of gasoline and diesel by expanding capacity and increasing residue conversion capability

Dominant crude varieties in Mexico have high sulfur and high residue content

Addition of residue conversion with Delayed Coking increase a refineries yield of Naphtha + Diesel

High yield of Pet Coke

Th

ou

sa

nd

b

arr

els

Pe

r D

ay

Source: Pemex Statistical Yearbook 2011

Refined Product Imports into Mexico

Source: Business Plan of Petróleos Mexicanos

and Subsidiary Entities June 1, 2010

VGO

VGO VGO

Vacuum Residue

Vacuum Residue

Diesel Diesel Diesel

Naphtha

Naphtha

Naphtha Gas

Gas

Coke

Base Case Base Case+ FCC

Base Case+ FCC+ Coker

Benefits of Adding Conversion

UOP 5831-4

Gasoline + Diesel

Transportation Fuels:

Gasoline, Jet Fuel, Diesel

Dis

tilla

tio

n

Naphtha

Crude Oil

Vacuum Residue

Vacuum Gas Oil

Distillates

Residues: Heavy Fuel Oil,

Pitch, Coke

Naphtha Hydrotreating & Reforming

FCC or Hydrocracking

Distillate Hydrotreating

UOP’s Heavy Oil Upgrading Processes

Residue Conversion

UOP/FWUSA Solvent

Deasphalting

FWUSA SYDEC™

Delayed Coking Process

UOP/FWUSA Visbreaking

UOP RCD Unionfining™

Process

UOP Solutions for Residue Conversion

UOP Uniflex™

Process

UOP 5831-5

Uniflex Process Commercial Experience

Petro-Canada Montreal Unit 25 years R&D

15 years commercial operation

High conversion

Many UOP improvements in the last 5 years

-20

0

20

40

60

80

100

Yie

ld, vo

l %

Naphtha

Distillate

VGO

Pitch

85% 94% 90%

Commercial Performance Conversion

UOP 5831-6

Commercial Operations:

5000 BPD unit operated for 15 years in Montreal

Processed wide range of feedstocks

Excellent design correlations allowing accurate scale-up

Very high reliability / availability demonstrated (97+%)

Uniflex Process Commercial Experience

UOP Enhancements:

Completed UOP Schedule A design

Petro-Canada Montreal Unit with improvements

– Single train design: parallel reactors, common separation

– More efficient heat integration

– High conversion of HVGO

Integrated pilot plant matches with commercial performance

Analytical modeling supports optimization

UOP 5831-7

Uniflex Process Thermal Cracking of Asphaltenes

Heavier, higher sulfur feeds have higher reactivity

Wide boiling range containing olefins, aromatics, S, N

Further hydroprocessing is required

Archipelago Model of Asphaltenes, Carbon # = 313, MW = 4705

Source: M. Gray, Univ of Alberta

Benefits from a combination of:

1. Thermal cracking to shorter chain lengths

2. Catalyst inhibits coke through:

Hydrogenation of free radicals formed in thermal cracking

Physically hinders growth of coke precursors.

UOP 5831-8

Uniflex Process Reactor Achieves High Conversion

Feed, H2 and Catalyst

Products and Catalyst

Optimal design for high conversion

−Upflow

−High temperature and moderate pressure

Efficient utilization of reactor volume

−Low gas voidage

−High product vaporization

− Intense liquid backmixing

−Near isothermal

Asphaltene management

−Nano-scale dispersed catalyst

−Solubility control techniques

UOP 5831-9

Slurry Reactor

Vacuum Residue

HHPS

Stripper/ Fractionator

Naphtha

C4-

Catalyst

Recycle H2

Diesel

HVGO Recycle

Makeup H2

Vacuum Column

Uniflex Process with HVGO Recycle

Pitch

LVGO

CHPS

HVGO

Recycling Benefits:

HVGO is difficult to process in HT, HC and FCC units

Uniflex converts HVGO to valuable products

UOP 5831-10

UOP CONFIDENTIAL

Vacuum

Residue

UOP Uniflex

Simple Integration into Existing Refineries

Diesel Pool

Cru

de

& V

acu

um

D

isti

llati

on

Crude

Oil Vacuum

Gas Oil

Distillates

Existing Hydrocracking,

MHC or FCC

New Distillate Hydrotreating

-40

-20

0

20

40

60

80

100

Delayed Coking Uniflex

Vo

lum

e%

VGO VGO

Distillate Distillate

Naphtha

Naphtha

Coke

(Wt-%)

Pitch

(Wt-%)

Yield Comparison

Uniflex Integration Benefits

• >55% yield of diesel: 2x Delayed Coking

• Simple stand-alone hydrotreater produces

reformer feed and Euro V diesel

• ½ VGO yield of Delayed Coking often allows

VGO to be processed in existing units

UOP 5831-11

Maximizing Naphtha and Diesel in an FCC Refinery Basis: Maya Crude

VGO

VGO VGO VGO

Vacuum Residue

Vacuum Residue

Diesel Diesel Diesel

Diesel Naphtha

Naphtha

Naphtha

Naphtha

Gas

Gas

Gas

Pitch Coke

-60

-40

-20

0

20

40

60

80

100

Base Case Base Case+ FCC

Base Case+ FCC+ Coker

Base Case+ FCC+

Uniflex

Uniflex increases transportation fuel yields by 10 Wt-% when compared to the Coker case

Ind

ica

tive

Yie

lds

(W

t %

)

Hig

h V

alu

e P

rod

ucts

L

ow

V

alu

e F

uels

UOP 5831-12

Uniflex Benefits

So what else is new and different that makes the above even

more compelling? The answer is higher prevailing

crude oil prices

Commercially Proven

Low-value Feed

High Conversion

High-value Products

Step Change Margin Increase

UOP 5831-13

Uniflex Process Residue Upgrading Economics

The value-added margin is high – given low value feed and high value products

0.9

0.5

Product Revenue Cash Margin

VR H2

Cash

Operating Cost

Indicative Annual Cash Revenues / Costs ($ Billion)

Pitch

1.4

UOP 5831-14

Can be handled in: − Liquid form for nearby uses

− Solidified for offsite markets

End Uses include: − Cement Kilns

− Fluidized Bed Boilers

− Conventional Boilers

− Gasification

− Delayed Coking

Feed

Pitch Catalyst

Uniflex Process Pitch Product

UOP 5831-15

0

5

10

15

20

Global Average Gross Refining Margins 3 – 8 $/bbl over the last 20 years

GR

M (

$/b

bl

of

Cru

de

Oil

Pro

ce

ss

ed

)

3 – 8 $/bbl

~10 – 16

$/bbl

Indicative margin (GRM) after installation of a Uniflex

complex

Low-quality and low-value feed (typically Vacuum Residue)

High conversion to high quality products

1990 1995 2000 2005 2010

Uniflex complex DOUBLES your refinery margins

Source of Historical Global Indicator Margin (GIM): BP

UOP 5831-16

NRL in Pakistan to Construct 2nd Uniflex Unit

Distillate Unionfining

Uniflex

Vacu

um

D

isti

llati

on

Pitch to

Cement Plant

Atm

Resid

Unicracking

Naphtha & Diesel

Unconverted

Oil

Solvent Deasphalting

(Existing)

Vacuum

Resid

Lubes Stock

Lubes

SDA

Pitch

DA

O

VG

O

VGO

Naphtha

& Diesel

Lubes

Increases margins by $150 million/year

Distillate from Crude Lubes Extract

Vacuum

Resid

UOP 5831-17

Uniflex Benefits....

Uniflex is a highly compelling technology, maximizing the use of existing facilities to minimize capital cost, while offering a new commercially proven industry benchmark

in Residue Conversion

UOP 5831-18

The Time is Now: − Falling fuel oil demand

− Rising clean distillates demand

− High prevailing crude oil prices

− Low cost of hydrogen production

UOP 5831-19

Uniflex Benefits....

Uniflex is a highly compelling technology, maximizing the use of existing facilities to minimize capital cost, while offering a new commercially proven industry benchmark

in Residue Conversion

UOP 5831-20

The Time is Now: − Falling fuel oil demand

− Rising clean distillates demand

− High prevailing crude oil prices

− Low cost of hydrogen production