Selecting the Right Technology

for your Base Stock

Manufacturing Needs

Dr. Madhav Acharya

Dr. Anna Gorshteyn

CIS Fuels and Lubricants

May 21-23, 2013
Moscow, Russia
Overview
• Basestock Trends
• Basestock Manufacturing Routes
• Upgrading of Solvent Facilities
– Incremental approach
– Petrolatum / Bright Stock processing

• Grassroots Group II/III Production

– Hydrocracker bottoms

• Benefits of MSDW™ Technology

2
Global Basestock Demand
Outlook by Region, kBD

• Overall industry demand expected to grow ~ 1% / year till 2020

• Europe, North America expected to be flat to slightly declining
• Majority of growth in Asia Pacific and developing countries

3
Fuel Efficiency Drives Demand for Lower
Viscosity, Higher VI Grades

Group I / Group II 95 VI
19
NOACK Volatility, Mass%

17
Group II+
15 API SM Max

13 Mid Tier Group III

11
9 Top Tier Group III
GM
7 Proposed
Global
5 Spec.
Group IV / PAO’s
3
3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5

Typ. API SM Viscosity @ 100 C, cSt

5W30

4
Basestock Capacity Essentially Flat
for 20 Years
kBD Global Basestock Capacity*
1000 (Paraffinic Basestocks By API Group)
 Evolving product mix Group III
750
– Growth in Group II and Group III Group II
– Group I declining 500
change Group I
250
 Viscosity grade mix changing
0

90

92

94

96

98

00

02

04

06

08
19

19

19

19

19

20

20

20

20

20
Net Capacity Change* Basestock Viscosity Grades*, %
kBD
(Paraffinic Basestocks by API Group) 100%
80
Group III 80%
60 Group II
60% Brightstock
40
Group I
40% HN
20
20% LN/MN
0
0%
2005 2009 Typical Typical
-20 Industry Industry Lubes Fuels
2007 2008 2009 2010 2011 2012 2013 2014 2015
Avg. Avg. H/C H/C

*Source: ExxonMobil assessment of publicly available information

5
Multiple Pathways Exist for
Lube Basestock Production
MLDWTM
RHC
Solvent Solvent
Hydrofinishing Group I
Extraction Dewaxing
Catalytic
Hydrofinishing Group I
Dewaxing
Solvent Group II
Unicracking Dewaxing
Hydrofinishing
Raffinate
Hydroconversion
Catalytic
Hydrofinishing Group II /III
Dewaxing
Distillate/DAO

Gasoline Vacuum Solvent

Hydrocracking Group II
& Diesel Distillation Dewax

HC Bottoms
Catalytic
Hydrofinishing Group II / III
Dewaxing
FT Wax
Slack/

Catalytic
Hydrotreater Hydrofinishing Group III / III+
Dewaxing

MSDWTM MAXSATTM
MWITM
6
Manufacturing Considerations
• Choice of manufacturing route depends on
• Desired products

• Available feedstocks
– Certain crudes are highly suitable for lube yields

• Existing infrastructure
– Solvent plant upgrade versus grassroots

“One-Size” Does Not Fit All.

I. Capitalizing on existing solvent plant

 Incremental investment approach to achieving higher quality
 Processing of solvent streams (Bright stock, Petrolatum)

II. Grassroots Catalytic Lube Plant

 Utilize Hydrocracker bottoms (UCO) with MSDW /MAXSAT to deliver Group II
and III

7
Existing solvent facility
Fuels
TailGas

Vacuum
Fract.
LN & MN
Raffinate
Constant Solvent Feed
Extraction Unit (SEU)
Feed Rate and Severity
Lubes to
Solvent
Dewaxing

Base Case: Group I

LN: 102 VI
LN/MN 10.0 kB/D
MN: 95 VI
HN 4.7 kB/D HN: 95 VI

----------
Fuels

Total Products 14.7 kB/D

H2 Consumption Base

8
Step 1: Add RHC to existing solvent facility
• LN/MN Raffinates upgraded to Group II/II+
• Advantage: Retain wax Fuels
TailGas

Vacuum
Fract.
LN & MN
Raffinate
Feed
Constant Solvent
Extraction Unit (SEU)
Feed Rate and Severity Treat Lubes to
Gas Solvent
Dewaxing

Base Case: Group I Step #1: RHC on LN/MN

LN: 102 VI LN: 110 VI
LN/MN 10.0 kB/D 8.9 kB/D
MN: 95 VI MN: 110 VI
HN 4.7 kB/D HN: 95 VI 4.7 kB/D HN: 95 VI
3.2 kB/D Diesel (60 Cetane)
----------
Fuels 1.1 kB/D Naphtha
Total Products 14.7 kB/D 17.9 kB/D
H2 Consumption Base ~ 70 Nm3/m3 over Base

9
Step 2: Replace solvent with catalytic dewaxing
• Save on solvent dewaxing operating cost

Fuels
TailGas

Vacuum
Fract.
LN & MN
Raffinate
Constant Solvent Feed
Extraction Unit (SEU)
Feed Rate and Severity
Treat
Dewaxed
Gas
lube

Step #1: RHC on LN/MN Step #2: RHC / MSDW

LN:110 VI LN: 110 VI
LN/MN 8.9 kB/D
MN:110 VI 15.0 kB/D MN: 110 VI
HN 4.7 kB/D HN:95 VI HN: 110 VI
Diesel (Low
3.2 kB/D Diesel 4.6 kB/D
Pour)
Fuels
1.1 kB/D Naphtha 1.7 kB/D Naphtha
Total Products 17.9 kB/D 21.3 kB/D
H2 Consumption ~70 Nm3/m3 over Base ~100 Nm3/m3 over Base

10
Step 3: Shutdown solvent extraction unit
• Full catalytic production for LN, MN and HN
• Increase valuable fuels byproducts
Fuels
TailGas

Vacuum
Fract.
LN, MN, HN
VGO’s

Treat
Dewaxed
Gas
Lubes

Step #2: RHC / MSDW Step #3: Lube HDC / MSDW

LN:110 VI LN: 115 VI
LN/MN
15.0 kB/D MN:110 VI 14.0 kB/D MN: 110 VI
HN HN:110 VI HN: 110 VI
Diesel (Low
4.6 kB/D Diesel (Low Pour) 12.9 kB/D
Fuels Pour)
1.7 kB/D Naphtha 2.4 kB/D Naphtha
Total Products 21.3 kB/D 29.3 kB/D
H2 Consumption ~ 100 Nm3/m3 over Base ~240 Nm3/m3 over Base

11
Hybrid Solvent + Catalytic option:
Petrolatum upgrade to Gp III+

Petrolatum (from
solvent dewaxing)

Density 0.859
Sulfur 0.29 wt%
Nitrogen 160 ppm

MSDW
HDT

HDF
Boiling range
0.5% 353 C
50% 561 C
99.5% 728 C

KV100 24 cSt
Wax content ~78%

Grade VI Pour NOACK

(cSt) point (C) (wt %)

• MSDW can process high wax 2 124 -42 70

4 136 -33 13.8

content/heavy feed with good
selectivity 6 139 -30 3

8 139 -29 1.3

12 131 -32 0.2

12
Hybrid Solvent + Catalytic option:
Bright stock raffinate processing
• High tolerance for S (up to 2000 ppm) demonstrated over catalyst with no
impact on overall life
• Demonstrated commercially at licensee site

BS properties

Density 0.9

MSDW

HDF
HDT
Sulfur 1.6 wt%
Nitrogen 250 ppm

KV100 31 cSt

13
Grassroots Catalytic Lubes Plant
• High upfront investment cost – but with lower long term operating expense
Adjust
Viscosity
Atmospheric Vacuum
Resid Gas Oil
Vacuum Catalytic
Hydroprocessing Hydrofinishing Group II
Distillation Dewaxing
(HDT / RHC / HDC) (MAXSATTM) Group III
(MSDW)
Vacuum Resid
DAO
Deasphalting

Improve VI, reduce Improve color

sulfur & nitrogen, Improve cold
Remove and stability,
saturate aromatics, flow properties
Asphaltic Saturate
reduce CCR, Convert wax to
Material and polynuclear
remove metals high VI lube
Adjust aromatics
Viscosity

Thermodynamics and catalytic functionality essentially requires a 3-step process

to convert vacuum gas oil and DAO to high quality lube basestocks

14
Impact of Blocked vs Broadcut Operation
• Blocked operation has higher overall yield relative to broadcut
• Product slate is also different
• Tankage investment required for blocked operation
LHDC Unit MSDW LHDC MSDW
yield, wt% Unit Unit Unit
yield, wt% yield, wt% yield, wt%
45.0 22.1 4cSt Lube
49.1 76.6 17 4cSt Lube
VGO for 4cSt, LHDC Btms,
KTA Conversion
KTA Conversion KTA 11.4 17
55.0 13.7 KTA

156.0 88.3 6cSt Lube 49.4 148.1

300.0 6cSt Lube
56.6 87.0 77
VGO for 6cSt, LHDC Btms, LHDC Btms, 52.3 77
Conversion Conversion KTA Mixed VGO feed KTA
KTA KTA KTA
49.0 6.2 KTA

17.0 12.7 12cSt Lube 8cSt Lube

74.6 70.0 9 5.9 9

VGO for 12cSt, LHDC Btms, KTA
Conversion Conversion KTA Conversion Conversion
KTA KTA
31.0 1.9 49.0 9.3

Total feed = 218 kTA Lube Product = 103 kTA Total feed = 300 kTA Lube Product = 103 kTA

15
Lower Yield When Manufacturing Gp III
• Extent of yield loss depends on feed wax content, boiling
range and desired VI of Gp III
LHDC Unit MSDW Unit
LHDC Unit MSDW Unit yield, wt% yield, wt%
yield, wt% yield, wt%

3cSt Lube
3cSt Lube
20.7 12 VI = 103 18.2 7 VI = 118
KTA
KTA

4cSt Lube
58.0 100.0 4cSt Lube
100.0 39.8
70.0 41 VI = 109
58.0 LHDC Btms, 39.8 69.9 28 VI = 124
VGO KTA KTA VGO KTA LHDC Btms,
KTA KTA
KTA

Overall Lube Overall Lube

Yield Yield

52.6 35.0

16
Select the Technology with a Proven Track Record
• Over 70% of Group II and III base oils are produced using the
MSDW catalyst system
– Two reactor system
• Reactor 1: Zeolite catalyst for dewaxing Others

• Reactor 2: Noble metal Hydrofinishing catalyst EMRE

MSDW
• Highest lube product yield and low fuels/gas production Technologies
• Features include
• Demonstrated ease and stability of operation
• Long life with yield maintenance (~12 years)
• High tolerance to contaminants

• No catalyst load ever replaced for:

– Reaching end-of-cycle condition
– Feed contamination upset
– Yield degradation
17
Extensive Global Experience across wide range of
feeds/configurations

Operating unit

Awaiting startup/under design/licensed unit

18
EMRE/UOP Licensing Alliance
• Licensing Alliance joins UOP Hydroprocessing technology with EMRE Catalytic
Lubes technology and Fuels dewaxing for low cloud diesel
• UOP brings extensive knowledge and experience in all refinery
hydroprocessing technologies, and extensive catalyst portfolio, to the Alliance
• EMRE brings worldwide lube process, operation, production experience and
extensive specialized dewaxing catalyst knowledge for both Fuels and
Lubricants
• Alliance allows UOP-EMRE cooperation in two refining areas to give Licensees
a cost efficient Fuels & Lubes processes
• UOP and EMRE working together provides synergy to improve outcome to
Licensees

A One-Stop-Shop for Premium Lubes and Fuels Production

The alliance brings together the UOP hydroprocessing technology, catalysts and
equipment with EMRE’s catalytic dewaxing technology and other EMRE
hydroprocessing solutions to produce high yields of low sulfur, ultra-clean diesel with
excellent cetane and cold flow properties and lube base oils

19
Summary
• Overall capacity growth in basestocks will mainly be seen in Group II/III Light
and Medium Neutral stocks

• Investment options include incremental upgrade of solvent facilities or

grassroots catalytic plant – consider target market for products, capital
constraints and hydrogen availability

• EMRE’s suite of technologies are commercially proven in numerous

applications – MSDW technology provides feed/product flexibility, long cycle
length and high degree of robustness

• UOP-EMRE Licensing alliance allows the refiner the simplicity of “one stop
shopping” for technologies to maximize lube yield and value

20