Refinery Petrochemical Integration Optimization

1. The changing dynamics of refinery-petrochemical
integration - Global and Asian trends in the drive for ever
increasing barrel-fraction of petrochemicals production
Noor Jivraj
Group Manager, Refining & Petrochemicals
Jacobs Consultancy Ltd., London
noor.jivraj@jacobs.com
Petrochemicals Asia 2012
20-21 June 2012

2. Agenda
• Changing Business Drivers and competitive advantage of
Refinery-Petrochemical Integration
• Advantages and Challenges of refinery-petrochemical integration
• Technology/Process/Catalyst developments and possibilities
helping for increasing petrochemical feed stocks from the refinery
• Towards maximization of Refinery-Petrochemical Integration
Configuration with full downstream petrochemical integration
• Level of Integration - Comparative of some recently
completed/ongoing/planned refinery-petrochemical integrated
projects
• Conclusions

3. Changing Business Drivers and
competitive advantage of Refinery-
Petrochemical Integration

4. Refinery-Petrochemical Integration has been an ever
evolving business model
• In the 1970s-80s, major oil refining companies had petrochemical
units that were largely a naphtha outlet:
o the refining business drove the decision making
o Integration was minimal
o the refining and petrochemical businesses operated as
independent “over-the-fence” style transactory entities
o Refineries lacked enabling complexity for world scale
petrochemical feed stock availability
• The 1990s saw more integration as Asia responded to the
contrasting and evolving demand growths of the refining cuts
• The availability of large capital in the Middle East and the need to
integrate downstream has elevated the level of integration
• Technology – process and catalyst developments allowed greater
extraction of petrochemical feed stocks from heavy distillates

5. Extraction of Value downstream
• Project Investment Returns on refinery cuts increase with
downstream integration – cracker yields greater value and
downstream petrochemicals increase IRR/NPV returns further
– Indicative IRR for 350 kbpd refinery would be 7-10%
– Indicative IRR for 350 kbpd refinery, 1400 kta naphtha cracker and
downstream petrochemicals would be 11-17%
• Truly integrated complexes can extract around 35% of
petrochemicals from refinery crude (mass basis) – this is
excluding gasification opportunities for residues and petcoke
• Refinery-Petrochemical complexes can evolve both by evolution
as well as revolution thus staging investment, engineering and
logistics complexity

6. Contrasting Refinery Cut Demand Drivers propelling the
changing face of refinery schemes
• Demand for heavy fuel oil with high sulphur contents has slowed
markedly
• Demand away from gasoline and towards diesel and aviation fuels
• “Cleaner” Fuels drivers – reduced aromatics, olefins, better
combustion characteristics, lower sulphur etc.
• Light olefins, ethylene, propylene and butylenes demand rising
faster than for aromatics due to damp demand for benzene and
toluene
• Crackers have been unable to meet the increasing propylene
demand. Propylene and Aromatics demand from refinery sources
has been growing

7. Advantages and Challenges of
refinery-petrochemical integration

8. Integration – Advantages from complexity
• Reliability of feedstock supply with less transport cost
• Supply chain optimization resulting in faster delivery of products and
optimum distribution
• Significant reduction in shared utilities system, less variable cost
• Synergies from joint infrastructures and logistics
• Working capital savings
• Size effect on support services: maintenance, HR, etc
• Higher cash margin
• Less recourse to trading market
• Independence and supply security
• Long-term exchanges

9. Integration – Challenges posed by complexity
• Integration gives rise to enormous complexity (>15 process
plants)
• Extremely high capital requirements (>$20 Billion)
• Technology access and licensing limitations may mean a
number of partnership ventures
• Construction labour force mobilization and coordination a major
challenge – tens of thousands of workers on site
• Availability of experience skilled plant operators
• Integration and Optimization can lead to limited operational
flexibility, and complex plant start ups

10. Technology/Process/Catalyst
developments and possibilities
helping for increasing petrochemical
feed stocks from the refinery

11. Enabling technology example - The
“Petrochemical” R-FCC
• Asia and the Middle East are getting long of heavy fuel oil
• RFCCs/FCCs represent the lowest capital cost conversion option
• Traditional FCC operation yields large volumes of gasoline
• Maximizing propylene by over-cracking/high ZSM-5 addition
minimizes gasoline but yields a gasoline of low blend value
• This high SG gasoline is an attractive aromatics feedstock with
high ultimate PX yield
• Recent Examples:
o Reliance Jamnagar used “Petrochemical FCC” to couple high propylene
production and FCC gasoline for aromatics production
o Oman Sohar project further extends these concepts to heavier feeds and
higher Propylene + PX yields

12. The “Petrochemical FCC” reduces heavy gasoline and
maximizes propylene and aromatics
 Coupling aromatics production with a high olefin yield FCC maximizes the petrochemicals value added
from the FCC unit
 Diverting the highly aromatic gasoline to aromatics production gets around the difficult problem of
blending this stream to gasoline
High Olefins & Aromatics Yield
Feedstock Enablers
Gas Plant
Fractionator
Vacuum Gas
Oil
(VGO or AR)
Propylene
Slurry Oil To Fuel Oil Blending
Fuel Gas
FCC
C4s to
Alkylation
Light FCC Gasoline to
Blending
Heavy FCC Gasoline to
Aromatics
LCO to Diesel

13. Towards the idealized refinery-
petrochemical cracker integrated
configuration

14. “Integration” Example: No integration between refinery and
petrochemical cracker complexes
The refinery may/may not have a naphtha reformer. It operates independently from the
cracker. It may have a modern FCC unit to enhance propylene production
Stand Alone Refinery & Cracker
Atmospheric
And
Vacuum
Distillation
Reformer
Fluid Catalytic
Cracker
Refinery
Hydrotreating
BTX Extraction
Distillate Processing &
Blending Pool
Benzene
Toulene
Xylene
Jet/Kerosene
Fuel Oil
Gasoline
Ref. Propylene
Ethylene
Propylene
Butadiene
Benzene
Toulene
Heavy Feed
Steam
Cracker
Fuel/Flare
Fuel/Flame
MoGas Processing &
Blending Pool
Hydrogen
C8 + Fraction
Pyrolysis F.O.
C4 Raffinate
Crude Oil
Naphtha
Secondary Products
Primary Products
By-
Products
AGO
VGO
Hydrogen
Reformate
FCC Gas
Straight
Naphtha

15. Steam Cracker designed in tandem with the refinery
enhances petrochemical synergies and value maximization
• Adding a steam cracker to this scheme exploits further
synergies with the refinery:
o Ethane and ethylene in FCC dry gas can be upgraded
o Ethane rich streams from the aromatics complex (CCR,
transalkylation and xylenes isomerisation) can be upgraded
o Raffinate and light naphtha streams can be cracked to produce
ethylene and propylene
o A single unsaturated gas plant can be shared by FCC and steam
cracker
o Pyrolysis gasoline from the steam cracker can be processed in the
aromatics complex

16. Integration Example: Significant integration between refinery
and petrochemical cracker complexes
A heavily integrated refinery-petrochemicals complex could in theory convert around 35%
of the crude oil to petrochemicals maximizing value. Additional Naphtha than what the
refinery would be capable of producing could be required depending on cracker capacity
Integrated Refinery & Cracker
Atmospheric
And
Vacuum
Distillation
Reformer
Benzene
Ethylene
Propylene
Butadiene
Benzene
Toulene
Heavy-Feed
Steam Cracker
with Olefins
Conversion
Unit
Pyrolysis F.O.
C4 Raffinate
Crude Oil
Naphtha
Hydrogen
JetFuel
DieselFuel
Fluid
Catalytic
Cracker
Refinery
Hydrotreating
BTX Extraction
Distillate Processing &
Blending Pool
Toulene
Xylene
Jet/Kerosene
Fuel Oil
Gasoline
Ref. Propylene
MoGas Processing &
Blending Pool
Hydrogen
C8 + Fraction
Reformate
PyrolysisF.O
C8+Fraction
C4Raffinate
AromaticNaphtha
Paraffinic
Naphtha
FCC Gas
Condensate
Splitter
Condensate
Paraffinic
Naphtha
GasOil

17. A Common Integrated Complex - Simplified
The Cracker, RFCC and Aromatics Units become the core design units for level of
integration
FLEXIBLE FEED ETHYLENE
PLANT
AROMATICS COMPLEX
POLYETHYLENE
UNIT
DISTILLATE
HYDROTREATER
OPTIONAL
PRETREATMENT
Polyethylene
Light Ends
CrudeDistillationUnit
(CDU)
Medium
Sore Crude
POLYPROPYLENE
UNIT
EO/MEG
EB/SM
Polypropylene
MEG
Styrene
Diesel
Paraxylene
RFCC
(RESIDUALFLUID
CATALYTICCRACKING)
Slurry Oil
AR
Light Ends
Ethylene
Propylene
Benzene
PX
NAPHTHASPLITTER
KERO
GO
FRN
Diesel
Oxygen
LVN
C4-
HVN
HCO
LCO
LCO
HeavyAromaticPurge
PyrolysisGasoline
Raffinate
LightEnds

18. Level of Integration - Comparative of
some recently completed and
ongoing/planned refinery-
petrochemical integrated projects

19. Middle Eastern Refinery-Petrochemical Complexes
show very varying degrees of integration
• PetroRabigh 1 - KSA
o 20 Mt/yr Crude Refinery with 2.15 Mt/yr petrochemicals (1.25Mt/yr petchems
is based on “imported” ethane) = 0.9Mt/yr crude based ~ less than 5% crude
to petrochemicals conversion
• Takreer – Abu Dhabi – (Ruwais Expansion – start up 1Q2014?)
o 20 Mt/yr Crude with est. 1.3 Mt/yr petrochemicals - ~ 7% crude to chemicals
• Sohar – Oman
o 116 kbpd = 5.8Mt/yr Crude with 350kt/yr PP, 800kt/yr PX, 210 kt/yr Benzene
~23% of the crude to petrochemicals
• Duqm – Oman – (Proposed, delayed and now under discussion as a JV)
o 300 kbpd ~ 15Mt/yr Crude, with 1.5 Mt/yr PP, 2.8 Mt/yr Aromatics, 0.75 Mt/yr
styrene. ~ 4.6 Mt/yr ~ 30% of the crude to petrochemicals

20. Asian Refinery-Petrochemical Complexes also show
varying levels of integration
• Formosa Mailiao: 3 refineries in total, 3 crackers
o 450 kbpd ~ 22Mt/yr Crude – 3.0 Mt/yr Aromatics (incl. 1.2 Mt/yr Benzene, 490 KTA
Toluene, 880 KTA PX) 1.6 Mt/yr Ethylene (2 crackers), 800 KTA propylene, ~ 25%
Petrochemicals
o Twin RFCCs now produce 12% propylene
• Reliance Jamnagar 1: (as per original nameplate configuration)
o 560 kbpd - 28Mt/yr Crude with 1.4Mt/yr PX, 0.2Mt/yr OX, 0.5Mt/yr Bz and 1.5Mt/yr PP
= 3.25Mt/yr petrochemicals ~ 12% of the crude
• ExxonMobil Jurong Island: 2 Refineries (evolved since 1966)
o 605 kbpd ~ 30 MT/yr Crude, 1.35Mt/yr Aromatics (2 units), 400 KT solvents, 900 KTA
ethylene cracker, 435 KTA propylene, 270 KTA n-butylene, 80 KTA MTBE: ~ 12% of
the crude
• Petronas RAPID: Mega Grassroots project in Johor on-stream 2016/2017 – will
require 10-12 JV partners – estimated in excess of $20 Billion total investment
o 300 kbpd refinery, 1 Million tons naphtha/mixed feed cracker (LPG??) ~ 3 Million Tons
petrochemicals - estimated 30% plus petrochemicals

21. Conclusions

22. Conclusions
• Recent and in-progress/planned refinery-petrochemical complexes are
showing an increasing trend in greater petrochemicals fraction from
every barrel of crude oil.
• Technological developments allow much greater conversions to
petrochemicals/petrochemical feed stocks
• The addition of a steam cracker, RFCC and an optimized Aromatics
“BTX” complex are the core of the current integration efforts
• Future efforts will see bringing in of other fuels such as natural gas, coal
and biofuels to develop further synergies for the next level of integration
• Integration also poses major design, construction and operational
challenges to be able to harvest the promised returns
• Integration can be staged – it can be evolution and just by revolution

23. Shanghai Office
6F South Tower B,
China Diamond Exchange Center
1701 Century Avenue,
Pudong New District
Shanghai 200122, PRC
+86 21 5081 8811 x 607 (phone)
+86 21 5081 6006 (fax)
Beijing Office
B-1523, Nanxincang Business
Tower
No.22 Dongsishitiao
Dongcheng District
Beijing, 100007, PRC
+86.10.64096636 (phone)
Canada Office:
400S, 8500 Macleod Trail S
Box 5244, Station A
Calgary, AB T2H 2NZ, Canada
+1 403 255 1421 (fax)
+1 403 258 6411 (phone)
United Kingdom Office:
Tower Bridge Court,
226 Tower Bridge Road,
London, SE1 2UP, UK
+44 20 7403 3330 (phone)
+44 20 7089 7750 (fax)
Netherlands Office:
Plesmanlaan 100, 2332 CB Leiden
P.O. Box 141, 2300 AC Leiden,
The Netherlands
+31 71 582 7111 (phone)
+31 71 582 7050 (fax)
Houston Office:
5995 Rogerdale Road,
Houston, Texas 77072, USA
+1 832 351 7800 (phone)
+1 832 351 7887 (fax)
Chicago Office:
525 West Monroe,
13th Floor,
Chicago, Illinois 60661, USA
+1 312 612 6035 (fax)