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$R4H2W58
$R4H2W58
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CLG responds to refiner’s needs in the current environment in Europe of more stringent fuel
specifications and increased refinery integration, by developing and commercializing several
new process schemes and demonstrating the efficient integration of these processes with other
processes.
Chevron Lummus Global (“CLG”) is a 50-50 Joint Venture between ChevronTexaco and
ABB Lummus Global. ChevronTexaco and ABB Lummus Global have cooperated in
hydroprocessing for more than 10 years successfully, with many hydrocracking licenses.
CLG is currently a leader in the world in hydroprocessing technology, and combines the
strength of ChevronTexaco as a refinery operator in the United States with the world-class
technology design skills of ABB Lummus Global. This unique combination is one of the
keys to the successes of CLG.
INDUSTRIJA NAFTE d.d. (“INA”) is a European Oil company, with its head offices in
Zagreb, Croatia. It was founded in 1964 when the operations of Naftaplin (oil and gas
exploration ad production) were merged with those of the refineries of Rijeka and Sisak. By
the end of the 1960s, INA had expanded to include the Zagreb refinery, Trgovina (a domestic
trade organization), the OKI and DINA organic petrochemical operations and the Kutina
fertilizer plant. In 1993, INA became a joint stock company (or “d.d.”).
As a key player in Croatia and in other southeastern European countries, INA is a vertically
integrated oil and gas company; INA operates in oil and gas exploration and production,
refining, and marketing of oil products. INA also has activities in LPG business, natural gas
transportation and provides integrated oilfield services.
INA strives to continue to be the recognized partner in Central Europe, known for producing
excellence of its products and services, having good and fair relations with its customers and
to safeguard the interests of its stakeholders. INA is also committed to preserve Croatia’s
natural heritage and therefore it is a company that has high Health, Safety and Environmental
standards.
INA operates in the refining and marketing of petroleum products mainly in Croatia and
south-east Europe. INA processes crude in the two fuels refineries.
Lubricants are produced in the Rijeka lube refinery and the Zagreb lube refinery. In 2003,
INA's refineries processed in total 5.5 million tonnes of crude oil and other feedstock. During
2003, INA invested 66 Million USD in the reconstruction of old processing units and
infrastructural facilities and as a result, the yield of LPG, motor gasoline and diesel
significantly increased. The revamps included reconstruction of the isomerization unit in
Rijeka, the revamp of the catalytic reformer and gas oil HDS unit in Sisak and the
reconstruction of some infrastructural facilities. This resulted in an increase of the yield of
light products to 72% and a further reduced fuel oil production.
In 2003, fuel sales increased by 8.5% with a boost in sales of diesel. Also the demand for
bitumen was high due to intensive highway construction in Croatia. Most of the products
were marketed on the Croatian market: 65% of total sales. The majority of the export is to the
neighboring countries: Slovenia and Bosnia and Herzegovina. In other export markets (Italy,
Austria, Hungary, Serbia and MED market) INA sold their products, mostly higher quality
products such as LPG, virgin naphtha and motor gasoline.
INA markets gasoline, gasoil, LPG and other refined products (lubricants) to retail customers
through a network, which in 2003 included 405 petrol stations all across Croatia. In addition,
INA has 29 other retail points, including terminals and retail facilities.
On July 17, 2003, the transaction agreements were signed between MOL, the Croatian
government and INA for the sale of 25% plus one share in INA d.d. This marked the
beginning of INA’s strategic partnership with MOL, the Hungarian Oil and Gas company,
which, together with its partners Slovnaft and TVK has become one of the leading players in
the region.
As partners, INA and MOL have a unique position in the fast growing Central European oil
product market, with leading positions in Croatia, Hungary and Slovakia. In addition, they
are strategically well positioned to expand further in Central Europe. MOL, INA and
Slovnaft have a combined refining capacity of 450,000 bbl/day and nearly 1,200 retail
stations across nine countries.
Further development of this partnership will enable INA to exploit synergies in all businesses,
to align corporate cultures and to establish communication channels that will enable better
utilization of each company’s specialization.
INA’s modernization plans for the Rijeka and Sisak refineries is centered around the
implementation of new hydrocracker and hydrotreater units plus their ancillary units for each
refinery.
Convinced by the economic benefits of the Split-Feed concept, in 2003, INA awarded the
strategic hydrocracking and hydrotreating projects in both Rijeka and Sisak to CLG.
The Split Feed Injection process has two reaction zones, as shown in Figure 1. The
hydrocracking zone (SSOT) is upstream of the hydrotreating zone. The hydrocracker
feedstock is introduced to the hydrocracker reaction section in the top. The middle distillate
is fed into the hydrotreating zone along with the hydrocracking effluent. Depending on unit
capacity, the hydrocracking zone and the hydrotreating zone can be combined into one single
reactor.
Split Feed Injection is ideal for moderate to high-conversion SSOT applications combined
with the need to process distillates. If VGO is coprocessed with middle distillates (AGO and
LCO) in the same reaction zone, there is an unfavorable environment for both streams and
results in higher operating temperatures, lowered selectivity and higher hydrogen
consumption. Some of the middle distillate feedstock would be hydrocracked to naphtha and
lighter material. Split Feed Injection avoids this.
BP Bulwer Island is able to produce diesel with less than 50 ppm sulfur content, and can
produce diesel with less than 10 ppm sulfur if required. For the BP Bulwer Island project,
approximately $ 30 million investment was saved with this flow scheme. The savings were
achieved with the Split Feed Injection scheme, the integration of hydrotreating into the
hydrocracking loop, and have been published.
INA has studied the investment scenarios and had found similar investment savings,
convincing INA to select the CLG Split Feed Injection scheme for the Sisak and Rijeka
refinery upgrades.
Another innovative process scheme developed by CLG for hydrotreating middle distillates
and heavy oils in the same high-pressure loop, is to hydrotreat the middle distillate with the
hot vapor from the hot high pressure separator. This flow scheme is shown in Figure 2.
The production of high-quality distillates while varying conversion, feed quality and product
selectivity can be achieved with a Two-Stage hydrocracker. A second stage provides the
flexibility to vary the unconverted oil bleed from 0 to 40%, depending on downstream
demands or degree of difficulty of feed. As bleed increases, conversion can be shifted
between stages to maintain product quality. Per-pass-conversion can be increased or
decreased in the second stage.
CLG has applied the Split Feed Injection concept with a Two-Stage hydrocracker for
the design of the Premcor Port Arthur hydrocracker. This unit has been in operation
since 2001.
For the Sisak hydrocracker and hydrotreater unit, we have established that the total savings in
equipment cost are 10-15 Million U.S. Dollars. The operating costs were also reduced, with
lower energy consumption and optimized hydrogen utilization.
Based on a 20 year financial project life, INA has determined the Internal Rate of Return
(IRR) for the Split-Feed Injection configuration and for the stand-alone hydrocracker and
hydrotreater units.
The financial analyses revealed a major benefit of the Split Feed Injection economics, with an
IRR of more than 5% higher than for the stand-alone units. Similar economic advantages
were found in the Rijeka evaluations.
The economics clearly favored the Split-Feed Injection concept, and helped convince INA to
select CLG’s innovative solution for their strategic refinery upgrades. INA was the first
European refiner to opt for this modern hydroprocessing solution.
The benefits of hydrocracking to produce feed for lubricant base stocks (as well as other
downstream processing such as FCCs and ethylene plants) are well known and in evidence at
plants around the world. In most of these cases, there is a dedicated lube hydrocracker,
followed by dewaxing and finishing steps.
The benefits of such an integrated approach are obvious – minimize capital investment
relative to building separate fuels and lubes hydrocrackers and lower the refiner’s cost of
producing high-value lube base stocks, thus providing a competitive edge.
A Korean refiner demonstrated the value of revamping an existing SSREC hydrocracker into
a fuels and lubes hydrocracker, producing extremely high V.I., Group III base oils and high
quality fuels at the same time in the same unit.
The benefits of using existing facilities to greatly enhance value-addition were fully
recognized by this refiner; however, the configuration used also had inherent limitations. The
conversion needed by the refiner to fulfill its fuels quantity/quality requirements set the
viscosity range and V.I. possible of the base oil feedstock, without much flexibility. Here is
where the ingenuity of the CLG-perfected Two-Stage Recycle (TSR) configuration, with its
innate advantages for making fuels described earlier, also can provide a highly flexible
platform to produce a range of lube base oil viscosities and qualities.
The patented principle is shown in Figure 4, where the configuration can be set up to produce
three different lube base oil feedstocks, while maintaining to a large degree the pre-
determined overall conversion level for fuels. Each of the three lubricating oil streams is of
different qualities and boiling ranges. Investment to recover each stream for further
ISODEWAXING/ISOFINISHING steps can even be phased to match market requirements.
BPCL’s Lubes plant is currently expected to start up about one year following feed in to the
hydrocracker in early 2005. Thus, BPCL will be able to make high quality fuels and lube
products with CLG’s integrated hydrocracking solution
INA is a European refiner that has planned to strategically invest in VGO upgrade and Clean
Fuels manufacturing for the European markets in its Sisak and Rijeka refineries.
INA has selected the Split Feed Injection scheme developed by CLG, based on the
considerable economic savings of this scheme.
The INA project and the other examples described in this paper demonstrate some of the
straightforward, elegant innovations that have a clear economic benefit for the refiner. These
projects are examples that are in the design phase, construction phase or that have started up
successfully.
The common elements in these examples give the refiners measurable value and competitive
edge:
• Exploitation of synergies across various hydroprocessing technologies, enhanced and
made reliable by -
• CLG’s extensive technology expertise, its R&D program, its vast experience and
demonstrated record of innovation, and
• Customers who have built a lasting partnership with CLG, and who are willing to
challenge convention and be the ‘first’ to commercialize and enjoy the benefits of
innovation.
The overall success of a project is a direct result of good cooperation with our clients and
understanding their needs.