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November 2016
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 CONTENTS
November 2016 Volume 21 Number 11 ISSN 1468-9340

03 Comment 61 Catching the fugitives

05 World News
12 On the crossroads
Valentin Kotlomin, Euro Petroleum Consultants, reviews the history
of the oil refining sector in Europe's Balkan region, and the recent
developments being implemented to meet modern European
industrial standards.
19 What next?
Nunzia Florio, UK Petroleum Industry Association (UKPIA), UK, explores
how the UK oil and refining industry will change as challenges and
opportunities arise in a new, post-Brexit Britain.
24 Ruling the waves
Steve Mason, Clean Fuel Ltd, UK, explores the environmental benefits
and potential of emulsified fuel, which will be used to power
Team Britannia's round the world powerboating record attempt.
31 Eyes on your asset
Colin Hickey, Sky-Futures, UK, highlights the benefits of using
unmanned aerial vehicles for confined space inspection and assuring
asset integrity of critical infrastructure.
35 A local, global problem
Jon Douglas, Frazer-Nash Consultancy, UK, discusses how a new sensor
is helping the downstream sector to detect corrosion under insulation.
41 Pump up the volume
Pharic Smith, Sulzer, UK, and Thomas Kraenzler, Sulzer, Switzerland,
examine the maximisation of pump efficiency through reduced
corrosion and erosion, allowing users to enhance productivity and
reduce running costs.
47 Progressive pumps
Norman Zombor, NETZSCH Canada, Inc., Canada, discusses the
continued development of sealing technology for progressive cavity
pumps applied in challenging hydrocarbon environments.
51 Feeling the pressure
Mike Northwood, Paladon Systems, UK, explains how high integrity
pressure protection systems can help downstream oil and gas
operators to improve plant processes and increase efficiency.
102 A multifaceted marketplace
57 A study in solutions
Julie Bodine, ValvTechnologies, Inc., USA, explains how effective and
innovative valve design and proper implementation can increase
process safety, reliability and efficiency.
112 15 facts...
Controlling fugitive emissions is one of the most important technical
challenges facing the oil and gas industry. Valves play a central role
in this, but, as Paul Shillito, Oliver Valves, UK, explains, there can be a
limit to the level of tightness operators should be aiming for.
66 Smokeless surroundings
Matthew Martin and Bryan Beck, Honeywell UOP's Callidus
Technologies Business, USA, discuss how multipoint ground flares
can help downstream companies achieve smokeless operations, and
improve burner cross-lighting and flame length.
73 Accuracy in adversity
Matthew J. Olin and Scott A. Rouse, Sierra Instruments, USA, explore
how advancements in natural gas sampling innovations are increasing
flow metering accuracy for tough applications.
78 A balancing act
Emmelyn Graham, NEL, part of the TÜV SÜD Group, UK, explains
how achieving the right chemical balance in hydrocarbon pipelines
can prevent flow assurance issues, enabling more effective processing
operations in downstream facilities.
83 Pure and simple
Joāo Amorim, Fernando Borges and Sérgio Moutinho, Galp
Energia, Portugal, and Lutz Kunze, Lothar Karrer and Bjorn Welander,
BASF – Catalyst Division, Germany, describe how Galp Energia
improved aromatic purification efficiency through the use of high
performance activated bentonite.
89 Cat cracker contamination: part two
Pat Salemo, Philadelphia Energy Solutions Refining and
Marketing, LLC, USA, and Doc Kirchgessner and John Aikman, Grace
Catalyst Technologies, USA, explain how Philadelphia Energy Solutions
tackled the negative impacts of iron contamination in its fluid
catalytic cracking system.
95 Purchasing power
There has been a growing movement amongst Western refineries to
purchase rather than produce hydrogen, a trend now also emerging in
the Middle East, India and Asia. Phil Morris, Air Products, UK, explains
what is driving this shift in approach.
Greg Bury, UniversalPegasus International, Canada, and President of the
Gas Processing Association of Canada (GPAC), discusses the challenges
and opportunities available in the Canadian marketplace for the
natural gas industry, in light of the US shale boom.
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COMMENT
ROSALIE STARLING, EDITOR
T
he last two years have proved to be a testing time
for the oil industry. The infamous price crash turned
the global economy on its head, and cost operators
billions in lost profits. The sector has faced substantial
investment cuts and considerable layoffs, and experts around the
globe have highlighted the potential risk to oil supplies – by no
means an encouraging sign for the future of the industry, and our
predominant source of energy.
Fed up of the continually languishing prices and climate of distinct uncertainty, in mid-summer, a
number of Organisation of the Petroleum Exporting Countries (OPEC) members called for a meeting
to discuss measures to stabilise the market. While the industry remained somewhat sceptical about
the gathering, plans went ahead and on 28 September, member countries convened in Algiers for
the 170th (Extraordinary) Meeting of the OPEC Conference. The result? Several significant conclusions
were endorsed – the most critical being that OPEC must not ignore the potential risk that the present
stock overhang may continue to weigh negatively into the future, impacting producers, consumers
and the industry alike.
Member countries have agreed to conduct a constructive dialogue with non-member producing
countries in an attempt to stabilise the market and avoid any adverse impacts in the short and
medium term – continuous collaborative efforts among producers, both within and outside of
OPEC, were highlighted as a key factor that would help restore market balance and sustainability.
Furthermore, the challenge of reducing excess stock levels over the coming quarters was addressed,
and members noted the drop in US oil inventories seen in the weeks running up to the meeting.
This is a big step for the industry – the last time OPEC agreed in principle to production cuts
was during the financial crisis in 2008 – with members deciding on an OPEC-14 production target
ranging between 32.5 and 33 million bpd in order to accelerate stock reduction efforts. While
OPEC hasn’t actually implemented the cuts yet, and many of the details need to be worked out,
a High Level Committee has been allocated to study the implementation of production levels
and develop a framework of consultations between OPEC and non-OPEC oil producing countries,
including the identification of risks and formation of proactive measures. These (as well as targets for
each country) are due to be decided at the next OPEC meeting on 30 November in Vienna.
So, while all of this looks quite promising, on 23 October, Iraq's Oil Minister Jabar Ali al-Luaibi
threw a rather large spanner in the works, informing reporters in a briefing that the country should be
exempt from output restrictions due to the funding required to fight the war against the Islamic State.
Falah al-Amiri, Director General of the State Oil Marketing Organisation (SOMO), further noted that
Iraq's market share was compromised by the various wars it has fought since the 1980s, adding that the
country "should be producing 9 million [bpd] if it wasn't for the wars."1
Oil prices dipped on 24 October following the announcement, with Reuters reporting a 0.6%
drop in Brent crude to US$51.46/bbl (down US$0.32) and a 0.7% fall in US West Texas Intermediate
(WTI) crude to US$50.52/bbl (down US$0.33).2
While things are still very uncertain for the global oil markets, according to analysts, OPEC's
upcoming meeting may signal a rebalancing in terms of production and consumption. "A decision
to cut to 33 million bpd should keep the crude price basis (Brent) in the US$50 - 60 band, not least
because it shows that Saudi policy has changed, that OPEC is serious and can rise above political
disagreements," noted David Hufton, PVM.3 One thing's for sure: all eyes will be on Vienna in
November when these crucial decisions will be hashed out by some of the industry's foremost figures.
References
1. ‘Iraq says should be exempted from OPEC output freeze’, Reuters, http://www.reuters.com/article/us-iraq-oil-
minister-idUSKCN12N0C4.
2. ‘Oil dips on Buzzard restart, Iraq; US crude tests below $50’, Reuters, http://www.reuters.com/article/us-global-oil-
idUSKCN12O02S.
3. ‘US crude settles down 33 cents at $50.52 after Iraq resists joining output cut’, CNBC, http://www.cnbc.com/
2016/10/23/oil-prices-drop-as-iraq-says-doesnt-want-to-join-opec-cut.html.
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 WORLD NEWS
Saudi Arabia | Refinery hydrocracking award
C hevron Lummus Global LLC (CLG)
has announced the successful
proven operation of one of the world’s
largest hydrocracking plants by Yanbu
Aramco Sinopec Refining Company
(YASREF), a joint venture between
Aramco and Sinopec. The new
hydrocracker has a fresh feed design
capacity of 124 000 bpd and is located
at the Yanbu industrial city refinery
supersite in the Kingdom of
Saudi Arabia. The design uses CLG’s
maximum conversion ISOCRACKING
technology, and its two stage with
recycle configuration has proven to
Indonesia | Technology licensing agreements
A xens has announced the signature
of several technology licensing
agreements with Pertamina for its
major expansion project to upgrade
residue into gasoline in Balikpapan and
for a new middle distillate
hydrotreater in Cilacap, to comply
with new regulations.
The Balikpapan project consists of
a grassroots resid FCC unit (R2RTM) with
a designed capacity of 90 000 bpd, a
liquefied petroleum gas (LPG) sulfur
removal unit (SulfrexTM), a propylene
recovery unit (PRU) as well as a new
80 000 bpd middle distillate
hydrotreater (Prime-DTM). The gasoline
produced by the resid FCC unit will be
Argentina | Hydrogen production project
A ir Liquide has announced a new
investment for Axion Energy
Argentina, a subsidiary of Bridas
Corporation and a leading refiner in
Argentina, to expand its long term
supply of hydrogen. Air Liquide will
invest approximately €55 million in
a second hydrogen production unit
(steam methane reformer – SMR)
for Axion in Campana, Buenos Aires,
which will raise the hydrogen
production capacity of the site to
37 400 Nm³/hr.
minimise investment, while providing
maximum conversion of a challenging
feed blend.
YASREF operates its world class
400 000 bbl full conversion refinery on
the banks of the Red Sea. The
hydrocracking unit was commissioned
in September 2015, enabling YASREF to
produce 263 000 bpd of high quality
middle distillate products, Euro 5 diesel
fuel and aviation kerosene, mainly for
export purposes. CLG will continue to
work with YASREF and its parent
companies to maximise the long term
profitability of the hydrocracking unit.
selectively hydrodesulfurised in a
Prime-G+TM unit with a designed
capacity of 48 000 bpd to produce
ultra clean gasoline.
The Cilacap project consists of a
36 000 bpd grassroots Prime-D
(distillate hydrotreater) unit, allowing
the production of ultra low sulfur
diesel.
The integration of Axens’ suite of
technologies, from the state of the art
resid FCC to the production of ultra
clean fuels thanks to technologies
such as Prime-G+ and Prime-D, will
enable Pertamina to significantly
reduce Indonesia’s dependence on
foreign imports of transportation fuels.
Expected to start operations by
the second half of 2018, the new SMR
will supply additional hydrogen and
steam to Axion Energy. The hydrogen
supplied by Air Liquide will be used to
meet Axion’s increased needs for its
refinery processes, supporting its
recent investments to expand
operations in Campana.
Hydrogen used in the petroleum
refining process will allow for the
reduction of the sulfur content of the
produced fuels and meet the
Grassroots
Russia |
furnace supply
T echnip has been awarded a
contract by Public Joint Stock
Company (PJSC) Kazanorgsintez to
provide the engineering and
procurement of three proprietary
SMKTM grassroots furnaces at Kazan,
Republic of Tatarstan, Russia. The
furnaces will be part of the ethylene
plant, which is located at the site.
This project represents another
step in Kazanorgsintez’s ongoing
cracking furnaces replacement
programme and confirms the
long standing relationship between
the two companies. In 2007 and 2015,
Technip supplied SMK double-cell
cracking furnaces to Kazanorgsintez
with successful startup and operation.
This furnace type is particularly suitable
for cracking high capacity, low cost
ethane and propane gas feedstock.
Technip's operating centre in
Zoetermeer, the Netherlands, will
execute the project, which is
scheduled for mechanical completion
in 2018.
Technip is the world's largest
ethylene licensor and contractor. Its
SMK coil technology has been applied
in more than 100 installations around
the world, providing reliable, flexible
and highly selective solutions to
improve operational efficiency.
environmental standards for cleaner
transportation fuels.
Carbon dioxide, a byproduct of the
production process, will also be
marketed for use by numerous local
customers.
The new SMR will be designed
and supplied by Air Liquide’s
Engineering & Construction teams,
offering energy efficiency as well as
optimal reliability and safety, and
will be owned and operated by
Air Liquide.
HYDROCARBON 5 November 2016
ENGINEERING
 WORLD NEWS
IN BRIEF
usa
CB&I has been awarded a five year contract
renewal, valued at approximately US$350 million,
for maintenance, turnarounds and capital
construction for a major refinery in the Midwest.
This award extends the company's 25 plus
year relationship with the customer, and it will
continue to provide sustainable value through
improved reliability and performance.
the netherlands
A partnership consisting of AkzoNobel, Van
Gansewinkel, Air Liquide, AVR, Enerkem and the
Port of Rotterdam announced that it is looking
to build a waste to chemicals plant in Rotterdam
in collaboration with the City of Rotterdam, the
province of South Holland and InnovationQuarter.
The facility will produce methanol from synthesis
gas generated from residual waste. This marks the
beginning of a new phase during which the parties
will work together optimising and completing the
feasibility of the business case, which includes the
selection of the exact location and the start of
the application process for the necessary permits.
finland
Neste Jacobs and Borealis have signed an
agreement for Neste Jacobs to perform the
energy screening for all production units at the
Borealis site in Porvoo, Finland. Neste Jacobs will
utilise its unique NJe2 technology, part of the
company's proprietary NAPCON offering for the
project. The project will start in Autumn 2016 and
the recommendations will be implemented in the
upcoming projects.
india
Ducon Technologies (I) Pvt. Ltd (DTIPL) has
secured a pet coke pipe conveyor contract from
Indian Oil Corporation Ltd for the Guwahati
refinery in a national competitive bidding process.
The scope of this turnkey contract also includes
conveying of lime, fly ash and bed ash handling
for the new boiler being installed at the refinery.
Ducon will provide the complete hazard and
operability (HAZOP) study, basic and detailed
engineering, and all equipment for disciplines such
as civil, structural, piping, mechanical, electrical
and instrumentation.
November 2016 6 HYDROCARBON
ENGINEERING
USA | Alliance agreement
C B&I has signed a long term alliance
agreement with Haldor Topsoe, a
leading catalyst and technology
provider, that will expand CB&I's
licensing position for syngas
opportunities.
As part of the agreement, CB&I will
promote Haldor Topsoe's licensed
syngas-based technologies, which
complement CB&I's existing
technology portfolio. CB&I will also
work with Haldor Topsoe on the
engineering, procurement and
construction of plants in
North America. The move represents
Australia | LNG programme completion
F ollowing a six year global design and
construction effort, Bechtel has
announced that it has completed
construction of the Curtis Island LNG
programme, with Australia Pacific LNG
starting sustained production from
Train 2 of its facility. Bechtel has now
delivered all six LNG production trains
to three customers – QGC,
Santos GLNG and Australia Pacific LNG
– on Curtis Island, off the shore of
Queensland, just north of the city of
Gladstone.
The three simultaneous
construction programmes are part of
the largest concentration of
private‑capital investment in Australia’s
Venezuela | Modular construction project
W ison Offshore & Marine Ltd has
announced its final delivery of
the key modularised components
construction project for Petróleos de
Venezuela S.A.'s (PDVSA's) RPLC refinery
plant, following the load out of the last
batch of modules.
The project was awarded to Wison
by the Hyundai-Wison consortium,
consisting of Hyundai Engineering &
Construction, Hyundai Engineering and
Wison Engineering, for the supply of
key modularised components, including
another step in the companies' long
history of technology collaboration.
The alliance further expands CB&I's
portfolio by leveraging eight additional
Haldor Topsoe technologies, while
capitalising on the company's
engineering, procurement and
construction (EPC) expertise.
The companies previously
announced a technology bundling
award for the Pertamina refinery
upgrade, which will use CB&I's CDAlky®
advanced sulfuric acid alkylation
technology and Haldor Topsoe's Wet
Gas Sulfuric Acid (WSA) technology.
history. The three facilities have the
combined capacity to supply
25 million tpy of LNG – equal to about
8% of the world’s production.
Design and construction of the
three LNG plants was a global effort
that peaked at more than
30 000 people across seven countries
on four continents, including at
one point employing almost
14 500 colleagues in Gladstone alone.
Execution of the programme included
direct-hire construction on
Curtis Island and modularisation of
major plant components in
Bechtel‑operated yards in Indonesia,
the Philippines and Thailand.
pipe racks and equipment modules.
Project scope covers the fabrication of
a total of 94 modules up to the size of
30 m x 10 m x 17 m each, with a total
weight of 26 000 t. The modules were
delivered in nine batches. All modules
will be used in 11 parts of the refinery,
including the hydrogen treatment
facilities, the vacuum distillation unit,
the cooling water system unit, the
wastewater system unit and the flare
system unit. The project was executed
over the course of 20 months.
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 WORLD NEWS
IN BRIEF
kuwait
SPIE Oil & Gas Services has been awarded a five
year contract with Kuwait National Petroleum
Company (KNPC) for its Clean Fuels Project (CFP),
a major upgrade of KNPC's flagship refineries to
meet future diversified market requirements for
petroleum products. SPIE has begun work on the
five year contract, which will involve providing
commissioning management and support services
at both the Mina Al Ahmadi (MAA) and Mina
Abdullah (MAB) refineries.
belgium
Praxair, Inc. has started up its second air separation
plant and is extending its pipeline system in the
Port of Antwerp, one of the largest petrochemical
production complexes in the world. The 1300 tpd
plant increases Praxair’s oxygen and nitrogen
capacity in the port and will support customers
with long term contracts. The new facility also
produces liquid oxygen, nitrogen and argon that
will meet customer demand in Belgium and the
Netherlands. Praxair has also started construction
of additional oxygen and nitrogen pipeline
extensions on the east and west banks of the port,
which are due to be finished by the end of 2016.
usa
Clariant has announced the official opening of
its new polypropylene (PP) catalyst production
facility in Louisville, Kentucky. The new plant,
developed and implemented in cooperation with
CB&I, makes the Louisville site Clariant’s largest US
production hub for catalysts and marks a further
investment by Clariant to accelerate growth in
North America.
india
GAIL (India) Limited has successfully started its
first 400 000 tpy UNIPOLTM polyethylene (PE)
process line. The total production capacity of
GAIL’s petrochemical plant at Pata is 810 000 tpy.
GAIL’s flexible high density polyethylene
(HDPE)/linear low density polyethylene (LLDPE)
swing plant provides access to a full range of
resin applications, which will allow GAIL and its
customers to capture new market opportunities
as PE market demands are changing.
November 2016 8 HYDROCARBON
ENGINEERING
Indonesia | LNG regasification project
K BR, Inc. has announced the award of a
pre-front end engineering and design
(FEED) study for PT Australasia LNG
Indonesia's (AALNG) new proposed
LNG Hub terminal in Probolinggo, East Java.
This is KBR's first contract with AALNG.
Under the terms of the contract, KBR
will provide a pre-FEED study for the
onshore LNG regasification and truck
loading distribution facilities of AALNG's
proposed LNG Hub terminal. The pre-FEED
study will be further developed for
USA | Major logistics assets acquisition
P
hillips 66 Partners LP has reached an
agreement with Phillips 66 to acquire
30 crude, refined products and natural gas
liquids (NGL) logistics assets for a total
consideration of US$1.3 billion. The
transaction is anticipated to close this
month, subject to satisfaction of
customary closing conditions. The
transaction includes the following assets:
a crude pipeline (503 miles) and terminal
(1.7 million bbls) system providing crude
supply for Phillips 66’s Ponca City refinery;
a refined products and NGL pipeline
(524 miles) and terminal (1.7 million bbls)
system that provides product takeaway
transportation services for the Ponca City
refinery; a crude pipeline (623 miles) and
terminal (570 000 bbls) system that
provides crude supply for Phillips 66’s
Billings refinery, consisting of a 79%
undivided interest; a refined products
pipeline (342 miles) and terminal
(386 000 bbls) system that provides
Singapore | Refinery FEED contract
A mec Foster Wheeler has been awarded
a contract by Singapore Refining Co. to
undertake front end engineering and design
(FEED) and detailed engineering services for
the upgrade of the company's crude and
vacuum heater efficiency in Jurong Island,
Singapore. Singapore Refining Co. is a joint
venture between Singapore Petroleum Co.
and Chevron.
The scope of the contract will
subsequent implementation phases to
meet a throughput capacity of
3 million tpy. The terminal could potentially
be expanded by adding more LNG regas
trains and LNG storage to meet future
demands in the East Java region. This work
is expected to be performed over 10 weeks,
with KBR performing the pre-FEED study
through an integrated team led by LNG
expertise from KBR's London office, with
support from KBR's Jakarta office and its
Granherne subsidiary.
C
M
product takeaway transportation services
for the Billings refinery; a refined products Y
and NGL terminal (2 million bbls) system CM
that provides storage services for
MY
Phillips 66’s Bayway refinery; a crude
pipeline (1089 miles) and terminal CY
(400 000 bbls) system that provides crude CMY
supply for the Phillips 66-operated Borger
K
refinery; and a refined products pipeline
(33% undivided interest in a 102 mile
segment and 54% undivided interest in a
19 mile segment of a 121 mile pipeline, as
well as 50% interest in a 293 mile pipeline)
and terminal (700 000 bbls) system that
provides product takeaway transportation
services for the Borger refinery.
The terms of the transaction were
approved by the board of directors of the
general partner of Phillips 66 Partners,
based on the approval and
recommendation of its conflicts
committee, comprised solely of
independent directors.
include a hazard and operability study
(HAZOP) and constructability studies. An
engineering, procurement, and
construction management (EPCM)
schedule will also be developed.
SRC operates one of the refineries in
Singapore, with a processing capacity of
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 WORLD NEWS
DIARY DATES API | US petroleum demand statistics

14 - 16 November
ERTC 21st Annual Meeting
T otal petroleum deliveries in
September increased 1.0% from
September 2015, but were down 2.6%
Total motor gasoline deliveries moved up
1.1% from September 2015 to nearly
9.4 million bpd – the highest September
Epic Sana Hotel, Lisbon, Portugal from August to average 19.6 million bpd, deliveries on record.
Tel: +44 (0)207 384 8013 according to the American Petroleum US crude oil production declined 8.9%
Email: marketing@gtforum.com Insitute (API). These September deliveries from year ago levels. However, at an
were the highest deliveries for the month average of 8.6 million bpd, domestic crude
14 - 17 November
API Fall Refining and Equipment Standards Meeting
in nine years, since 2007. For 3Q16, total oil production in September increased by
Hyatt Regency New Orleans, Louisiana
petroleum deliveries decreased by 0.1% 0.8% from August – the first month over
Tel: 202-682-8195 from the same period last year. For year to month increase in six months. Compared
Email: registrar@api.org date, total domestic petroleum deliveries with year to date 2015, domestic crude oil
remained flat compared to the same production declined 6.1%. Compared to
16 - 17 November period last year. 3Q15, crude oil production decreased 8.5%
Tank Storage Germany Gasoline deliveries in September were for 3Q16. September crude oil production
Hamburg Messe, Germany up from the prior year, the prior year’s was the third highest level for the month
Tel: +44 (0)20 8843 8800 third quarter, and the prior year to date, and the second highest year to date level
Email: libby@stocexpo.com but were down from the prior month. in 31 years, since 1985.
29 November - 1 December
Valve World Expo
UKPIA | Priorities for Brexit negotiations
Messe Düsseldorf, Germany
Tel: +49 (0)211 4560-541
Email: HartmannP@messe-duesseldorf.de T he UK Petroleum Industry Association
(UKPIA) has published its latest report,
'Fuelling the UK’s Economic Engine', which
meaningful strategy for the future will be
the creation of an environment where
industry can deliver and thrive, getting
22 - 24 January sets out the key priorities for the the nation’s energy policy right,
Middle East Refining Technology Conference downstream oil sector for a new recognising the strategic value of the
Manama, Bahrain relationship with the EU and for a downstream oil sector, today and in
Tel: +971 4 435 6101 meaningful industrial and energy strategy years to come, and realising a secure
Email: kay.mitchell@clarionevents.me that works for the whole UK. energy future through a clear, stable and
Chris Hunt, Director General of well designed legal, fiscal and regulatory
12 - 15 February
UKPIA, said: “Essential to achieving a framework.”
Middle East Sulphur 2017
Jumeirah at Etihad Towers, Abu Dhabi, UAE
Tel: +44 (0) 20 7903 2444 IEA | Energy efficiency gains
Email: conferences@crugroup.com

20 - 21 February
8th International Gas Technology Conference
A s governments focus on
implementing their commitments to
save energy and reduce carbon emissions
Madinat Jumeirah, Dubai under the recently ratified Paris
Tel: +971 (0)4 421 4642 agreement, the new 'Energy Efficiency
Email: office@europetro-me.com
Market Report 2016' from the
21 - 23 February International Energy Agency (IEA) has
International Petroleum Week 2017 highlighted the progress made by energy
Grosvenor House Hotel, London efficiency policies around the world over
Tel: +44 (0)20 7467 7100 the past year, particularly in China and
Email: kcrabb@energyinst.org other emerging economies.
The role of energy efficiency in the
21 - 23 February global energy transition is examined in the
ME-TECH 2017 report, which finds that its importance
Madinat Jumeirah, Dubai cannot be overstated. Simply put, there is
Tel: +971 (0)4 421 4642 no realistic or affordable energy and
Email: laura@europetro-me.com climate change policy without a sizeable
and vigorous energy efficiency
component. Energy intensity – the
amount of energy used per unit of GDP
– improved by 1.8% last year, meaning the
global economy needed less energy to
grow. The improvement exceeded the
1.5% gain of 2014, and was triple the
average rate seen over the past decade.
Last year’s gains were achieved in spite of
lower energy prices, which generally
dampen the enthusiasm for energy
savings.
However, the report also shows that
while much has been accomplished,
global progress is still too slow. Global
energy intensity improvements need to
reach at least 2.6% per year to put the
world on a sustained pathway for a
decarbonised energy system.

November 2016 10 HYDROCARBON

ENGINEERING
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 CROSSROADS
Valentin Kotlomin, Euro Petroleum
Consultants, reviews the history of the
oil refining sector in Europe's Balkan
region, and the recent developments
being implemented to meet modern
ON THE European industrial standards.

November 2016 12 HYDROCARBON

ENGINEERING
T
he various Balkan countries that are discussed
in this article may seem similar, yet they have
profound social, economic and cultural
differences. Among the few things they do
have in common is their communist past, which started
at the end of World War II and ended in the early 1990s
when the Soviet Union collapsed. Throughout this
period, the countries’ economies were under strong
influence from the USSR – this, obviously, left a strong
imprint on the oil refining industry as well. In the late
1980s to early 1990s, the heyday of the industry,
cumulative capacity of the local refineries constituted
10% of refining in Europe, and refining throughput was
around 50 million tpy. The subsequent events – the
countries distancing from ‘building communism’, the
break up of Yugoslavia and economic recession – all
led to a drop in refining throughput (about
20 million tpy over the past few years). The following
sections look at the historical background, the
dynamics and the current state of the oil refining
industry in such countries as Romania, Bulgaria, Serbia,
Croatia, Bosnia-Herzegovina, Former Yugoslav Republic
of Macedonia (FYROM), Albania and Slovenia.
Romania
The Romanian oil industry has a long history. Back in the
mid-19th century, Ploesti, a region located between the
Carpathians and Danube, was one of the global oil
production and refining centres. Romanian refining
peaked in 1989 at over 30 million t. At the end of that
same year a popular uprising began, which ended in the
The Parliament Palace in
Bucharest City, Romania.
HYDROCARBON 13 November 2016
ENGINEERING
 Petrobrazi has reached a steady throughput of
3.7 - 3.9 million tpy.
Another major player in the Romanian refining sector
is KMG International (KMGI), the owner of two
integrated refineries, Petromidia and Vega, with
capacities of 5 million and 500 000 tpy, respectively.
The company received its current name in 2014 – before
that it was called Rompetrol. Rompetrol’s acquisition by
KazMunaiGas, the national oil and gas company of
Kazakhstan, marked a major milestone in the company’s
Figure 1. Refining throughput in ex-communist Balkan history. Since 2009, KMG has been the sole shareholder
countries (million tpy).
of Rompetrol.
Of all the refineries in the region, Petromidia is one
of the most modern, with construction completed in
Table 1. Refining throughput in ex-communist 1979. A modernisation programme that lasted from
Balkan countries 2006 to 2012, and cost US$380 million, made the
1990 2013 refinery’s position even stronger. Thus, as per the 2015
Romania 23.7 million tpy 9.4 million tpy results, it was Petromidia that refined almost 50% of all
Bulgaria 8.3 million tpy 5.6 million tpy the crude processed in Romania. As for Vega, it was
transformed from a conventional refinery into a
Croatia 6.9 million tpy 3.0 million tpy
speciality products plant producing bitumen,
Serbia 4.9 million tpy 2.7 million tpy solvents, etc.
Bosnia and Herzegovina 2.0 million tpy 1.0 million tpy In April 2016, China Energy Company Limited (CEFC)
Former Yugoslav Republic of 1.2 million tpy 60 000 tpy signed a memorandum of understanding to purchase a
Macedonia 51% stake in KMGI for US$680 million.
Albania 1.1 million tpy 40 000 tpy Another example of a Commonwealth of
Independent States (CIS) investor obtaining a share in
Slovenia 500 000 tpy 0
the Romanian oil refining industry is the Russian
Source: IEA independent oil and gas company Lukoil and the
Petrotel refinery. Lukoil has been growing its interest in
overthrowing of the socialist regime. The several steps. In 1998 it acquired a 62% stake in the
post‑communist upheaval led to a considerable drop in refinery, which had a capacity of 4.5 million tpy, for
refining throughput – only around 10 million tpy over merely US$53 million. Currently, Lukoil’s interest in
the last few years. The Romanian refining sector is Petrotel is over 97%.
comprised of 10 plants, with capacities of 500 000 to The initial entering price was that low for a reason
5 million tpy, yet most of the smaller refineries have – the refinery asked for sizable investment. From
been closed down, or are operated at a very small mid-2001 until the end of 2004 the refinery was out of
capacity utilisation. operation – it was undergoing modernisation that cost
Romania, like many other countries in the region, has around US$121 million and involved the construction of
a national oil company, Petrom. At the end of 2004, an an FCC gasoline hydrotreating unit and isomerisation
Austrian oil company, OMV, acquired 51% of Petrom and unit. The next step of modernisation, spanning
from January 2010 the company has been called 2005 - 2014, cost Lukoil US$540 million and made it
OMV Petrom. Initially Petrom operated two refineries, possible for the refinery to produce Euro 5 fuel. At
Petrobrazi and Arpechim, with 4.5 and 3.5 million tpy of present, Petrotel has an estimated throughput of
capacity, respectively; however, in 2012, Arpechim 2.4 million tpy. Though this performance is quite stable,
ceased to operate for economic reasons. it is rumoured at times that Lukoil is planning to quit its
With OMV as majority shareholder, the company Romanian business – a series of conflicts between the
focused on upgrading Petrobrazi. During the 2005 - 2015 company and the Romanian state authorities appear to
period, total investment amounted to €1.2 billion. fuel these speculations.
Initial investment aimed at improving the quality of Yet another example of Former Soviet Union (FSU)
motor fuels produced and bringing them up to Euro 5 investors taking interest in the Romanian refining
standard – therefore, the revamping of the diesel industry is Onesti, a refinery with a production capacity
hydrotreatment unit and the construction of a new of 3.5 million tpy. In 2007 the 98% stake held by RAFO,
fluid catalytic cracking (FCC) gasoline hydrotreating the refinery’s owner, was acquired by Austrian company
unit. Larger scale investment followed with new Petrochemical Holding GmbH, with Yakov Goldovskiy, a
construction, including the revamping of a crude oil Russian businessman, as its ultimate beneficiary.
distillation unit (CDU)/vacuum distillation unit (VDU), Goldovskiy is a well known figure in the Russian
delayed coking unit (DCU), FCC unit and other facilities, petrochemical industry. In the late 1990s he co-founded
as well as improving the plant in terms of energy the Russian petrochemical major Sibur and, since 1999,
efficiency and environmental friendliness. Lately, he has been the chief executive officer (CEO) of the

November 2016 14 HYDROCARBON

ENGINEERING
Latest News
CADWorx ®

2017
Plant Professional

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ANOTHER MONTHLY GAIN FOR US SPECIALITY CHEMICALS FASTER
The Speciality Chemicals Market Volume Index, a tool created by the American
MODELING
& SMARTER
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rose 0.3% in September. This follows a revised 0.1% gain in August and 0.3% gain in

DESIGN
July. All changes in the data are reported on a three month moving average (3MMA)
basis.

PETROBRAS TO SELL OKINAWA REFINERY

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trademark of Autodesk, Inc.
 company. At the beginning of 2002 Goldovskiy was
detained and subsequently passed control of the
company over to Gazprom.
However, the interest in RAFO does not seem to
have worked. Since 2008 the refinery has been out of
operation for economic reasons, and it appears that the
company failed to attract major investment for its
modernisation. In June 2016, some media reports
indicated that the Onesti refinery had been sold to an
Austrian company, Andres Capital GmbH, controlled by a
group of Moldovan investors. It is currently unclear
whether the new owners will manage to breathe life into
the plant.
Bulgaria
In the Soviet era, the relationship between the
Soviet Union and Bulgaria was so close that the latter
was almost considered a 16th republic of the USSR.
Obviously, this had an impact on the Bulgarian refining
industry. In 1964, the Burgas refinery was put on stream
with the assistance of Soviet specialists. Later it was
developed into a refining and petrochemical hub on
the Black Sea coast. The golden age of the refinery
came in the late 1980s – refining throughput amounted
to 14 million tpy. In the 1990s, annual throughput varied
greatly and capacities were selectively put out of
operation to improve the plant’s economic
performance.
1999 was a milestone year in the history of the
Burgas refinery, as it became part of the Lukoil Group.
As Lukoil gained control over the refinery it embarked
upon a modernisation programme aimed at increasing
energy efficiency, improving environmental friendliness,
and bringing motor fuel production up to current
European standards. Throughput stabilised at
5.8 - 6.4 million tpy.
Another pivotal modernisation goal was to increase
the conversion rate, since all it had then in terms of
residue conversion was a visbreaker and bitumen
production. In the mid-2000s the decision was taken to
construct a residue conversion complex, with a
2.5 million tpy residue hydrocracking unit (H-Oil process)
at its core. Construction finished in mid-2015. Operation
of the complex, as expected, will make it possible to
process more third party fuel oil, and to increase light
product yield by 20%.
Serbia
Whilst on the topic of Russian investments into the
region, it is imperative to take a closer look at Serbia.
After Yugoslavia broke up, it became apparent that
Serbia had two refineries on its territory, Pancevo and
Novi Sad, with 5.4 and 3 million tpy of capacity,
respectively. Both refineries were built in 1968. Aside
from local crude, the facilities could obtain their
feedstock via the Adria pipeline. In 2009, as per the
intergovernmental agreement between Serbia and
Russia, a 51% stake in the state-owned Naftna Industrija
Srbije (NIS), the company that controlled all of Serbia’s
petroleum assets, was sold to Russia’s state-owned oil
November 2016 16 HYDROCARBON
ENGINEERING
company Gazprom Neft. In March 2011 Gazprom Neft
increased its interest in NIS to over 56%.
In 2009 - 2012 Gazprom Neft invested €540 million
in the Serbian refining industry. Most of the investment
went into the construction of a hydrocracking and
distillates hydrotreating complex at Pancevo. The
complex was launched in 2012, thus making it possible
for the refinery to produce Euro 5 fuels and increase its
conversion rate. The throughput went up as well, from
2.3 - 2.4 million tpy in 2011 - 2012 to 3.1 - 3.3 million tpy
in 2013 - 2015.
The second modernisation stage that has been
announced for Pancevo is a project to increase the
conversion rate, with a DCU at its core. In March 2015,
NIS contracted CB&I for technology licensing and
project front end engineering design (FEED). The
finalisation date is set for 2020.
Croatia
After the break up of Yugoslavia, Croatia received a
large portion of its refining assets – the plants in Rijeka
and Sisak, which have capacities of 4.5 and 2.2 million,
respectively, and are integrated into the Adria pipeline
system connecting the refineries to the Port of Omisalj
in the Adriatic Sea.
The refineries are owned by INA. The company’s
history began in 1964 with the integration of two
refineries and an oil and gas production company
called Naftaplin Zagreb. In 2003 INA and MOL, its
Hungarian oil and gas ‘neighbour’, formed a strategic
partnership whereby MOL acquired ‘25% plus one
share’ in INA for US$505 million. This happened to be
just the first step – over the following 10 years MOL
grew its share in INA to over 49%.
In 2011 the Rijeka refinery finalised its
modernisation. Following the construction and launch
of a soft hydrocracking complex, all of the motor fuels
produced were up to Euro 5 standards. The Sisak
refinery was also modernised: in 2009 it launched an
FCC gasoline hydrotreating unit, and in 2011 an
isomerisation unit.
In February 2014 a contract for the basic design of a
DCU for the Rijeka refinery was signed with Bechtel
Hydrocarbon Technical Solutions. The expected
amount of investment is around €300 - 350 million.
Bosnia and Herzegovina
The only refinery in Bosnia and Herzegovina, located in
the vicinity of Bosanski Brod, may well be one with the
most dramatic history in the region. The first train of
the refinery, with a capacity of 1.2 million tpy, was built
in 1968. Although the refinery’s primary distillation
capacity was rather small, it operated a vacuum gas oil
(VGO) hydrocracking unit that provided for high light
product yield, as well as low sulfur residue. The latter
was further processed into high quality base oils and
lubricants at a local motor oil plant. In 1990 the second
train was constructed with a capacity of 3 million tpy.
The refinery possessed good feedstock logistics, since
it was tied into the Adria pipeline system.
 Further development of the plant was stopped due to the Balkans war
– located right on the border between Croatia and the Republika Srpska,
the refinery found itself almost in the eye of the storm. The new train was
never put on stream. The pipeline system and railroad facilities passed into
the control of Croatia. Pursuant to that, the refinery resumed operations
only in 2000. The refinery entered a new development stage in 2007, when

... GA... ...P...S

Neftegazinkor, a 100% subsidiary of Russian state-owned company
Zarubezhneft, became the majority shareholder of the plant.
Upon completion of the modernisation programme, the refinery managed
to achieve throughput of 900 000 - 1.2 million tpy and start producing Euro 5
diesel and high octane gasolines, yet remains unprofitable. Thus, it seems that
Zarubezhneft’s activity in Bosnia and Herzegovina is still a political project,
with Russia lending a hand to a friendly state, the Republika Srpska.

Former Yugoslav Republic of Macedonia

The only Macedonian refinery located near the state capital, Skopje, was
built in 1982 with active support from Soviet specialists. The refinery’s
capacity is 2.5 million tpy, yet over the 25 years capacity utilisation has
remained at 50% or less.
The refinery belongs to OKTA. Since 1999 OKTA’s majority shareholder has
been EL.P.ET. Balkaniki, a subsidiary of Greek oil group Hellenic Petroleum. As

gaps.hoerbiger.com
it acquired OKTA, Hellenic Petroleum embarked upon a programme to
integrate the Macedonian refinery with the HELPE refinery, located in
Thessaloniki, through the construction of a 210 km long pipeline. The pipeline
was put on stream in 2002. Aside from pipeline construction, there was a
refinery modernisation programme that spanned 2000 - 2007 and cost around
US$60 million, which aimed to improve the quality of the fuels produced.
Over the last few years the OKTA refinery’s performance has been far
from stable – in 2013 the refinery experienced a shutdown and processed
merely 60 000 t of crude. In 2014 it resumed operations, yet the financial
result of the year was negative. In 2015 OKTA regained profitability and its
2016 results also look promising.

Albania
The Albanian refining industry is comprised of two plants, in Ballshi and in
Fier, which have capacities of 1 million and 500 000 tpy, respectively. Over
the last few years, the Ballshi refinery remained idle, while the Fier refinery
kept operating, although at extremely low capacity utilisation – in 2013 it
only managed to process 40 000 t of crude.
In February 2016 the owner of the Fier refinery, ARMO, made an attempt
to sell it for €20 million through an organised auction, but failed. According
to company data, it only had a single call – someone from abroad requested
additional information.

Slovenia
The Slovenian refining industry consists of a single refinery with 700 000 tpy
of capacity that was operated until 2000. In 2015 the owner of the refinery, a
state energy holding Nafta Lendava, sold it to US Methanol Corporation for a
mere €5.6 million. It is likely that the new owner will dismantle the plant and
sell off the equipment that is still operational.

Conclusion
The oil refining industry in each of the countries discussed has experienced
some challenging periods, had its fair share of drama (and even detective plots),
and each one is worthy of its own separate article. Yet the pivotal factor that
drives the development of these industries is their desire to integrate into
modern Europe through the rationalisation of facilities, improvement of health,
safety and environment (HSE) standards, implementation of modernisation
programmes to bring products up to the current European standards, and the
enhancement of operational activities.
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what
next?
Nunzia Florio, UK Petroleum Industry Association (UKPIA), UK, explores
how the UK oil and refining industry will change as challenges and
opportunities arise in a new, post-Brexit Britain.

F
ollowing the result of the UK referendum on its membership of the EU, a number
of questions have arisen regarding the country's future interactions with the EU
and its links with the global marketplace. In this evolving landscape, strategically
important energy supply sectors, such as oil refining, have an even more pivotal
role to play in the nation’s energy resilience and in ensuring the UK’s mobility, trade and
growth. It is therefore more critical than ever to consider the necessary steps and
regulatory frameworks that will enable the industry’s long term success.

UK economy
Today, domestic oil refineries make a substantial contribution to the UK economy,
supporting an estimated 88 100 jobs,1 many with highly specialist skills and technological
expertise. The annual contribution to the economy is some £2.3 billion2 and each large
refinery is estimated to inject approximately £60 million3 locally. If the activities of the
UK oil production sector are included, an additional £9 billion4 can be added to the
annual contribution to the UK economy. As refineries, somewhere, are required to
process UK production, the two sectors cannot be entirely segregated. Refining also

HYDROCARBON 19 November 2016

ENGINEERING

ranks among the top three most innovative sectors in the EU,
and it is widely acknowledged as having the highest
proportion of skilled jobs within the EU manufacturing
industries. Furthermore, the industry supplies important
feedstocks for other industrial sectors and processes, such as
petrochemicals, road and construction, lubricants and
greases, heating fuels, paints and solvents, and carbon
electrodes for the aluminium sector. The multiplier impact
of the sector is, thus, much greater.
Emissions
UK oil refineries are also, on average, less emission intensive
(0.21 t CO2/t of product) than non-EU refineries
(0.29 t CO2/t of product) and carbon leakage, in the event of
a refinery closure in the UK, has been estimated at about
135%.5 This figure translates as every 100 units of CO2
emissions that are reduced in the EU are replaced by 135 units
outside it, resulting in a net increase in global emissions.
Supply and demand
With the UK downstream oil sector sourcing over 86% of
national fuel demand, and supplying more than one third of
the UK’s primary energy demand needs, what happens in the
industry not only impacts the security of energy supply and
resilience, but reverberates throughout the entire economy.
However, this is only part of a larger energy story. Looking to
tomorrow, global energy demand is projected to increase by
a further 32% to 45%6 through to 2040, mainly driven by
economic expansion and population growth. Whilst all
primary energy sources will need to rise to meet demand, oil
is expected to remain the dominant source of energy supply.
With transport being the largest consumer of oil, it is also
important to note that oil products are expected to
continue meeting 85%7 of the world’s primary energy
demand for transportation, which is in turn projected to rise
by about 30%8 from current levels. Although in the UK
primary energy demand to 2035 is projected to remain
virtually level, oil products will continue to meet about 40%9
of final energy consumption and 92%10 of total
transportation needs. Accordingly, sustaining and maximising
domestic production of oil products will be crucial to
meeting future energy needs and fuelling economic growth
and prosperity in decades to come. However, UK oil
refineries face challenges aplenty. Three refineries have
closed since 2009, despite UK refineries being some of the
most efficient and competitive facilities globally, assuming a
level playing field in policy terms with EU and non-EU
competitors. This has resulted in overall UK crude oil
processing capacity declining by nearly a third, more than
twice the UK’s inland market demand over the same period.
Against this background, the UK is already classed as a
high energy security and resilience risk11 for diesel and
jet fuel, importing 60% of total jet fuel demand and 50% of
diesel demand, primarily from the Middle East and Russia,
respectively. Based on International Energy Agency (IEA)
measures developed to evaluate national energy security
risks and resilience capacities, more refinery closures would
leave the UK further exposed to the international product
market for those products already classed at high risk. The
pressures facing the UK refining sector are manifold and
November 2016 20 HYDROCARBON
ENGINEERING
t
include strong international competition from countries with
markedly lower industrial energy costs and, most crucially, a
legislative background that severely disadvantages them
against EU and global competitors.
The future
An independent report by the Information Handling Services
(IHS)12 to assess the role and future of the oil refining sector
in the UK places the cost impact of legislation on UK
refineries in the region of £11.03 billion by 2030. The report
concludes that no industry would bear such mandatory
investment cost for no return and, as a result, more refineries
could be forced to close in the UK. At EU level, as part of the
European Commission’s Better Regulation policy, a
programme for Regulatory Fitness and Performance (REFIT), a
fitness check13 of the oil refining sector was initiated in 2012.
Fitness checks are comprehensive policy evaluations aimed
at assessing whether the regulatory framework for a
particular policy sector is fit for purpose. A fitness check into
the oil refining sector, assessing the regulatory framework for
the refining industry and evaluating its impact on the sector’s
competitiveness, was published in December 2015.
The final report provides evidence of the significant
impact of the cost of EU legislation on the global
competitive position of the European refining industry. The
study concludes that the average cumulative cost of the
different pieces of legislation analysed (2010 - 2012) accounts
for up to 25% of the total net loss of competitiveness of the
sector versus global competitors. The study also points out
to the additional costs from legislation coming into effect
post-2012, whilst highlighting the considerable effect of
increasing energy prices on industry competitiveness.
Conclusion
Now, the critical question is whether or not the necessary
steps will be taken to ensure that the industry’s
competitiveness is maintained. As the UK engages in
important discussions about the future, the refining industry’s
strong connection to economic growth and security of supply
cannot be overstated. A strong energy tomorrow can only be
realised with the right regulatory framework today, one which
recognises the essential role of the industry and the need to
preserve its long term success.
References
1. IHS, The Role and Future of the UK Refining Sector in the Supply of
Petroleum Products and its Value to the UK Economy, 2013.
2. Idem.
3. UKPIA.
4. IHS, 2013.
5. Vivid Economics, Carbon Leakage Prospects Under Phase III of the
EU and Beyond, Refining Case Study, 2014.
6. IEA, World Energy Outlook, 2015 (New Policies Scenario and Current
Policies Scenario).
7. Idem.
8. ExxonMobil, The Outlook for Energy: A View to 2040, 2016.
9. Department of Energy and Climate Change, Updated Energy and
Emissions Projections, 2015.
10. Idem.
11. International Energy Agency’s Model of Short Term Energy Security
(MOSES) – 'net import' indicator – 45% import dependence
benchmark = high risk.
12. IHS, The Role and Future of the UK Refining Sector in the Supply of
Petroleum Products and its Value to the UK Economy, 2013.
13. EU Commission, EU Petroleum Refining Fitness Check: Impact of
Legislation on Sectoral Economic Performance, 2015.
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 Steve Mason, Clean Fuel Ltd, UK, explores the
environmental benefits and potential of emulsified
fuel, which will be used to power Team Britannia's
round the world powerboating record attempt.

November 2016 24 HYDROCARBON

ENGINEERING
A
s British sailor Alan Priddy prepares to
attempt a round the world powerboating
record using emulsified diesel, one might ask
if there is any future in this old and (as many
believe) failed concept? The answer is a simple,
resounding yes. While there are certainly a number of
problems with the marketability of emulsions, the
science is convincing.
Diesel engines dominate mass transportation, heavy
industries and the marine sector as they offer superior
fuel to power conversion and better fuel economy.
Despite this, diesel engines are one of the major
pollution contributors to the environment. Pollutants
emitted from diesel engines include particulate matters
(PM), black smoke, nitrogen oxides (NOX), sulfur oxides
(SOX), unburned hydrocarbons, carbon monoxide (CO)
and carbon dioxide (CO2). Emulsified fuel provides an
alternative fuel for combustion engines and can be
used in almost any existing engine setup, with little or
no costly additional modification or retrofitting.
Regulatory issues
The fact that none of the major players operating
within the petroleum sector are currently producing or
HYDROCARBON 25 November 2016
ENGINEERING

Figure 1. An artists impression of Excalibur,
Team Britannia’s new boat.
Figure 2. The Fiat Power Train C13 500, six cylinder
engine that will power Excalibur.
Figure 3. The new engine rigged for testing.
selling such a product is contributing to a highly
sceptical public that have, for years, been led to
believe that the mere presence of water in fuel is
disastrous for engines. However, experts from a
number of key companies operating within the
industry, as well as academics, have acknowledged the
significant potential of emulsified fuel. Furthermore,
they have recognised the concept and science
underpinning emulsified fuel as sound. A few have
gone on to identify the foremost issue – a regulatory
regime that prevents and disincentivises new markets,
November 2016 26 HYDROCARBON
ENGINEERING
new product entrants or even research and
development (R&D).
The fact is that, for years, the UK Government and
regulators have been complicit in closing down this
debate and, with the adoption of standards such as
EN590 for diesel fuel, this has made it impossible for
'water in diesel' emulsions to obtain approval. Simply
put, the process of emulsifying regular diesel with
water is subject to identical regulations as regular
diesel. The current ISO or DIN qualifications do not
take into account the properties of emulsified diesel
and, as such, fail on two counts. Firstly, the colour:
emulsified diesel has an opaque milky whiteness,
dependent on the amount of water blended with the
diesel (hence why it is often referred to as white
diesel). Secondly, and most importantly, the testing
method by chemical analysis that is currently used will
detect the presence of water as it breaks down the
mix into its constitute parts.
The Team Britannia project
It is common knowledge that diesel contains water (it
has been added); however, what interested the
researchers at Clean Fuel Ltd is: does it work, how
does it affect the engines (both in terms of
performance and long term maintenance) and, finally,
does it cut pollution? The first question, does it work,
has already been answered. It works so well that later
this year it will be used as an emulsified fuel to power
a round the world powerboat record attempt. The
voyage, dubbed Team Britannia, will be carried out in a
fuel efficient British-designed and built vessel,
overseen by naval architect Professor Bob Cripps and
his team at Longitude. The vessel is a variant of the
fast-hull displacement design, but aside from this
shares the same characteristics as a traditional boat.
Construction work on the 80 ft vessel is well
underway on the UK’s south coast at the Aluminium
Boatbuilding Company. The boat’s 38 aluminium frames
were fixed into a specially made upside down jig in
June 2016. The wheelhouse is currently under
construction and the boat's protective skin, or plating,
for the hull has been cut and is being fixed in place. In
early September the hull was turned over and the six
5833 l fuel tanks slid into place. In total there are
around 3000 pieces of metal that will be welded
together by boatbuilder Paul Johnson and his team on
Hayling Island, near Portsmouth.
Fuel performance and engine testing
The engines, two six cylinder Fiat Power Train C13 500s,
are commercially available and, apart from some slight
race tuning, are otherwise unchanged. In
September 2015, the engines were tested
independently at Hendy Power in Portsmouth to assess
fuel consumption, power output and pollution levels.
The results were nothing short of astonishing. After
warming the engine up on standard diesel, the
Clean Fuel team proceeded to test five different fuel
emulsions: 5%, 10%, 15%, 20% and 25% water. The
 power output and fuel consumption
remained flat across all the different
mixes. Another benefit, which had
already been observed in a previous
test, was that the engine ran cooler.
The whole process was filmed and,
after reviewing the footage on several
occasions, the Clean Fuel team detected
no significant visual or audio changes in
the engine performance, until the
testing reached the 25% water emulsion.
At this point there was a change in the
smoothness of the sound of the engine;
however, this was not reflected in
output or consumption. The team
concluded that the 25% mix requires
further work and research.
Prior to this test, the team had only
Figure 4. Engine test sheet showing no loss of power when using been running non-independent tests,
emulsified fuel. fuelling a fleet of vehicles (cars and
vans) assessing gallons per mile,
recording anecdotal evidence on
performance and testing pollution via the
Ministry of Transport (MOT) regime and through
visual inspection. Although one successful engine
test cannot validate a belief in emulsified fuel, it
spurred the team onto conduct further tests and
to work with Clean Fuel’s chemical supplier and
mixing company. The team has also been careful
to assess the long term affect of using emulsified
fuel on various test vehicles. Previous problems
have included uncontrolled micro-explosions in
the chambers. Over time, long term exposure to
these micro-explosions led to pitting – and no
one would use a fuel that damages their engine.

Figure 5. Results from simple visual test showing the
reduction of particulate matter when using emulsified fuel.
Figure 6. Team Britannia monitoring the dyno testing at
Hendy Power.
Environmental benefits
Independent oil tests, along with regular engine
inspections, have confirmed that using a correctly
mixed emulsion eradicates this problem and, in
fact, the emulsion has a small but noticeable
cleaning effect on the engine, which goes some
way to addressing the question: does emulsified
fuel cut pollution? Initial data certainly suggests
so, and the company has observed significant
reductions in NOX and PM; however, there are
hundreds of tests that still need to be conducted.
It can be asserted, though, that it does not affect
the level of sulfur emitted, other than reducing
the amount in each unit of fuel burn by the
addition of water. It could help to solve many of
the concerns around the harmful effects of NOX
and PM on the health of the public, in addition to
the effects on the environment. Government and
EU figures estimate that pollution from these two
alone prematurely kill nearly 30 000 people in
the UK annually, and 7000 in London alone. It
could also resolve the issue of a number of car
companies using so called ‘cheat software’ to
meet ever stricter emission standards.

November 2016 28 HYDROCARBON

ENGINEERING
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Project monitoring
This is why the round the world record attempt later this year will be a
defining moment for Clean Fuel, and perhaps the emulsified fuel
industry. To complete the record attempt, the boat must pass through
the Suez and Panama Canals, cross the Tropic of Cancer and the Equator
and start and finish in the same location. The world record authority
Union Internationale Motonautique (UIM) has approved Team Britannia’s
proposed route, which will start in Gibraltar and call at Puerto Rico,
Manzanillo, Honolulu, Guam, Singapore, Oman and Malta to take on fuel.
In total, a substantial journey of some 23 000 miles.
The record attempt is a milestone for emulsified fuel, with the key
question being: if it works under these challenging conditions, why has
this old solution been ignored for so long? The vessel will be carrying up
to 35 000 l of marine gas oil (MGO) and this will be mixed in-situ using
desalinated water and mixing equipment in 450 l batches for use in the
two 500 hp diesel engines. The data from the engines will be monitored
in real time; among the data will be the fuel burn, power output and
emissions at all stages of the voyage. All of this data will be beamed
back to the UK and published in full on the project’s website so it can be
monitored and, most importantly, scrutinised by the public. The
publicity generated by the record attempt will expectantly act as a spur
to further research, as the public and policy makers alike begin to see
the potential benefits of switching to emulsified fuel.
Testing programme
There is still a long way to go for the testing programme. Aside from the
record attempt, the company is conducting work into emulsifying pure
biodiesel, which goes some way to solve the issue of CO2 , but
conversely can burn hotter, exacerbating the NOX and PM issues.
Furthermore, there is the issue of the fuel’s operation in cold weather.
The company has been testing the fuel in the relatively benign
conditions of the UK, including light frost conditions, but what if the
fuel were to be used in the frozen waste lands of Antarctica, or similar?
The science and simple logic suggest that the presence of water will
cause problems with the fuel freezing more rapidly – how would this
affect the rate of stratification? Most importantly, the company aims to
push the regulators (that have, until now, been caught flat-footed and
were either not aware that there are alternatives to simply burning
straight diesel, or that there is a clear need for new regulations) to look
at what can be done to support an industry that, for the most part,
operates below the radar.
Conclusion
The environmental benefits of supporting the emulsified fuel industry
could be significant. According to leading Environmental Commentator
Matt Ridely, the world still remains wedded to fossil fuels, with around
87% of global energy coming from this source – 4% comes from nuclear
fuel, and just 1.3% from wind and solar. This profile is unlikely to change
in the short term, meaning that harnessing existing technology and
improving it must be a worthwhile project. The government will
undoubtedly play a role as well, ensuring that the emulsified fuel enjoys
a favourable tax regime, improving its cost efficiency – while water is
untaxed, it is when mixed into an emulsion.
Where this project has already gone, Clean Fuel expects other
companies to follow, but only if governments and regulators realise that
they must do more to promote innovation and make it significantly
easier for new market entrants. This is crucial if the voyage of Clean Fuel
and the emulsification industry is to continue after Team Britannia
crosses the finishing line in Gibraltar at the end of the year, having
broken the round the world powerboat record.
 EYES ON
YOUR ASSET

Colin Hickey, Sky-Futures, UK, highlights the

benefits of using unmanned aerial vehicles for
confined space inspection and assuring asset
integrity of critical infrastructure.

C
onfined space entry is a necessary part of maintaining the integrity
of industrial assets. Confined spaces occur in a wide range of
industries in the form of storage tanks, silos, reaction vessels,
enclosed drains, sewers, pits, cargo tanks, ductwork and more.
Inspection of these spaces is necessary to ensure that they can adequately
contain any material that is held within them, and also to ensure the
structural integrity to avoid collapse or similar mechanical failures.

Quality
Manually accessing confined spaces requires highly skilled technicians that
are qualified to negotiate complex, hazardous environments. They typically
require a significant amount of access equipment and also need to detect
and record anomalies whilst in those demanding environments. Quality
issues would naturally arise in such a working environment.

Safety
Confined spaces are also inherently unsafe. Hazards include asphyxiation,
falling from height, exposure to poisonous gases, fumes or vapours, liquid or
flowing solids filling the space, fires and explosions, and hot conditions. The
safety issues related to confined space entry are extensive.

Business
Accessing confined spaces requires the shutdown of a plant for relatively
long periods of time due to the complexity of the task. This, of course, has a
business impact, as uptime means money. Reducing downtime has huge
advantages. Additionally, both a safety and business concern, manual access
to confined spaces is assumed to cause integrity damage. The process of

HYDROCARBON 31 November 2016

ENGINEERING

Figure 1. The Sky-Futures inspection portal: Hangar
showing typical offshore inspection results. Courtesy
of Sky-Futures.
Figure 2. Cargo tank inspection showing stiffening
bracket welds in the Sky-Futures Hangar inspection
portal. Courtesy of Sky-Futures.
Figure 3. Example of imagery captured by the
Flyability Elios UAV and reported in the Sky-Futures
Hangar inspection portal. Courtesy of Sky-Futures.
installing scaffolds and climbing within structures inherently has
an impact on the space, the remediation of which is typically
accounted for in the inspection project budget.
Sky-Futures has worked closely with Flyability to develop a
method for performing high accuracy confined space inspections
without the need for manned entry. The hardware used for this is
the Elios unmanned aerial vehicle (UAV), a unique device with a
number of industrial, emergency response, humanitarian and
environmental applications. The Elios is a quad-copter surrounded
by a carbon fibre protective cage with the ability to rotate around
X, Y and Z axes. This unique design allows the Elios to interact
with objects without disturbing its ability to fly safely. Flown in a
skilled manner, the device can navigate complex spaces, relaying
first person view back to the pilot and other stakeholders.
November 2016 32 HYDROCARBON
ENGINEERING
For the past 12 months, Sky-Futures and Flyability have worked
together at a test facility, designing and testing procedures for
confined space inspection of industrial assets. The Sky-Futures
350 acre test site provides unsurpassed access to various realistic
scenarios, including an offshore platform and a ship. Within these
spaces, operators are able to fly and test the UAV to its limits under
controlled parameters.
New technology
The introduction of new technologies to hazardous industries has to
be carried out with diligence. There is a lot at stake when performing
inspections, and the replacement of a person with a robot requires
great care. Sky-Futures set out to discover whether a person could be
replaced by a robot in a confined space. The key questions that arose
included:
nn Could one be sure that they had covered the entire surface area
that needs to be inspected?
nn Is the imagery captured of sufficient quality to detect anomalies
by the engineers viewing the data remotely?
nn Where is the UAV – and, therefore, the anomaly that has been
identified – located?
nn Can one safely recover the UAV through flight, considering that
manual retrieval would make the exercise futile?
It must be noted that currently the Elios UAV is not EX rated and,
therefore, the confined space must be emptied of flammable
materials before UAV inspection is carried out.
Overcoming challenges through robust
procedures
The inherent benefit of using a safer unmanned approach to confined
space entry is clear. However, the quality of the inspection results
must meet or exceed that of manual inspection.
In a confined space, GPS coordination is not possible. To know
where one is located within the space, the pilot and inspection
engineer have to rely on detailed flight planning, knowledge of the
contents of the confined space and strict flight and communication
processes. This is not dissimilar to the approach already used during
outdoor UAV inspections on major hazard facilities around the world.
Inspecting live flare stacks onshore and offshore requires the same
strict adherence to protocol as negotiating a confined space.
The meticulous approach used by UAV inspectors is enhanced
when applied to confined spaces using a flight/review loop. When
the UAV is returned to the pilot, the onboard HD footage is reviewed.
This provides an extra layer of quality to ensure that the location is
checked and no anomalies were missed during the viewing of the live
relay at flight time. This process has been extensively blind tested to
ensure its effectiveness. Using this methodical approach, the
company is able to ensure it is always aware of the location of the
UAV, it has a double sweep of anomaly detection using live and
offline footage, and drawings are updated during the inspection to
account for anomalous objects that could be a hazard to flight. In this
way, the challenges of introducing a robot to perform confined space
inspection are overcome.
UAV inspection advantages
The benefits of using a UAV to perform inspections are extensive. In
confined spaces these benefits are magnified. As is already the case
for the many companies making use of UAV inspection, typically, the
number of site visits can be greatly reduced if the company is able to
give large numbers of stakeholders eyes on their asset from their
desktop. The nature of UAV inspection provides the users with a high
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Figure 4. A pilot and inspection engineer perform
a remote confined space inspection, observed by
the asset owner and classification body. Courtesy of
Sky‑Futures.
Figure 5. Corrosion on the wall of a cargo tank from
the UAV’s perspective. Courtesy of Sky-Futures.
quality visual data set. Imagery can be accessed by all manner of
stakeholders. Robotically captured data, coupled with
telemetry information, fits perfectly with modern cloud
technology. Sky-Futures delivers reports for its clients in a highly
secure cloud platform. This allows the high definition video and
high resolution images to be provided in context to clients for
rapid, intuitive access.
When considering this in the context of confined spaces, it
is only a very small number of highly skilled individuals –
typically third party contractors – that will ever see the
confined space first hand.
UAV inspection of confined spaces completely changes this.
The continuously captured high definition video and images can
be placed in context and made accessible to all parties that may
derive business benefit from it. Sky-Futures works with 3D
models to place anomaly findings onto a digital facility to
guarantee that the information captured by the UAV is totally
unambiguous. The latent benefit of this is that compounding
data over time allows stakeholders to start developing trends
throughout the findings, ultimately providing the user with
leading indicators and prediction.
The Elios’ spherical shape allows it to roll along walls, weld
seams and floors. The onboard lighting is remotely adjustable,
which allows the pilot and inspection engineer to control the
settings to capture the optimum footage for any given
environment. The onboard lighting, offset from the camera, is
particularly useful at casting shadows to highlight pitting on the
floors of tanks – something that is notoriously hard to detect
manually.
November 2016 34 HYDROCARBON
ENGINEERING
If no anomalies are discovered, then the inspection was a success
and facility operation can continue. If anomalies are discovered, the
project to correct the problems must be carried out safely and
efficiently. Armed with high quality footage, all parties involved in
project planning, fabrication and maintenance of the facility are able to
plan, deploy and carry out their activities safely and very efficiently.
Workers are directed to the exact spot where they are required and
there are no surprises. Remediation projects run on time and plans are
executed on budget, with no workers adding to the unfortunate
statistics of confined space injuries and fatalities.
Case study
Sky-Futures recently inspected the cargo tank of a floating production
storage and offloading (FPSO) vessel for a client in the presence of its
classification body. More recently, work has been carried out within
onshore hydrocarbon storage tanks and power plant gas turbines. The
applications of this technology and its procedures are extensive. The
results of inspections are available for scrutiny throughout the client
organisation and its surveyors or class body as required. The quality of
data captured provides the user with details on welds, corrosion,
previous remediation and other information that is critical to the safe
operation of the plant.
The FPSO is located in Europe and is undergoing maintenance and
upgrades between client leases. Downtime is being kept to a
practicable minimum due to the high value nature of the asset. The
confined space comprises approximately 9 m x 4 m x 3.5 m volume with
two corrugated walls and irregular surfaces. The ceiling supports the
above deck and, therefore, structural members run throughout.
Pipework penetrates the walls of the space and valves are present
inside the confined space, which are normally submerged in liquid
hydrocarbons. Heating pipework runs along the floor and lower
sections of the walls. This is used to maintain temperature and ensure a
viscosity of product suitable for transport out of the cargo tank, and
presents a hazard to people and the UAV as they can be damaged by
moderate force. An access hatch leads to a ladder into the space for
manual access. Together these physical components present a sensitive
and complex space that has historically been negotiated manually. For
the UAV they present obstacle challenges. Due to the low mass of the
UAV and low flight speed, the subsequent low momentum cannot give
rise to forces that can damage any of the objects or substrates within
the space. The UAV does, however, have the potential to get caught on
obstacles. The flight paths were, therefore, very carefully planned and
carried out. The pilot and inspection engineer performed systematic
sweeps of the walls for general visual inspection. This was followed by
close visual inspection, adjusting light and camera settings as necessary,
with results as shown in Figure 3. The condition of welds at high stress
points were naturally of concern and the condition of toe welds of
structural braces were seen clearly, with the ability for a wide range of
stakeholders able to view video footage and photographs through the
cloud portal, as mentioned previously. A range of further observations
were made, including coating breakdown and small patches of
corrosion present on the walls near the floor, as shown in Figure 5. A
tank of this size can be inspected in detail in approximately 12 hours.
With such a large amount of footage, the importance of providing
spatial context and priority of information is clear and, thus, the power
of Sky-Futures' inspection portal software Hangar is evident.
Conclusion
Confined space inspection using unmanned aerial vehicles offers an
excellent opportunity to a wide range of industries as an inherently
safer means to assuring asset integrity of critical infrastructure.
 A LOCAL,
GLOBAL PROBLEM
Jon Douglas, Frazer-Nash Consultancy, UK, discusses how a new sensor
is helping the downstream sector to detect corrosion under insulation.

C
orrosion under insulation (CUI) is a problem
experienced by businesses across the
downstream sector. As a severe form of
localised corrosion it can affect any metallic
pipework or storage tank – whether situated in a refinery,
process plant or fuel distribution facility. The damage it
causes to underlying structures can potentially destroy
the asset’s integrity and result in costly breaches. A 2013
report, ‘Corrosion-Related Accidents in Petroleum
Refineries’, describes an incident that occurred at a
refinery:
“The incident was primarily caused by a structural
failure of a 200 mm nominal bore (NB) carbon steel feed
pipe to the dehexaniser column on unit 35. The pipe was
insulated and the external surface of the pipe wall
beneath the insulation had corroded at a region where
water had been collecting. The corrosion had reduced
the pipe wall metal thickness to a level that could not
support the internal pressure of the process fluids and a
major process release occurred.”1
Corrosion prevention and damage is a major cost
across many industries, including defence, refining,

HYDROCARBON 35 November 2016

ENGINEERING

Figure 1. An illustration of the boron-doped diamond
sensor.
Figure 2. Corrosion prevention is a major cost across
a range of downstream industries.
petrochemical, power, industrial, and onshore and offshore
oil and gas. The recent International Measures of
Prevention, Application, and Economics of Corrosion
Technologies (IMPACT) study from corrosion authority
NACE International estimates that the cost of corrosion
globally is US$2.5 trillion,2 and this figure typically excludes
costs related to individual safety and environmental
consequences.
Corrosion protection, particularly for pipework
distribution networks, is often characterised through the
use of protective coatings made from ceramics or
enamels, which attempt to provide a barrier between
the metallic surface and the environment. Cathodic or
anodic protection may also be used to reduce the
November 2016 36 HYDROCARBON
ENGINEERING
corrosion rate. Applying these coatings can be costly
and time consuming, requiring abrasive pretreatment,
and environmental concerns have been expressed
about the potential toxicity of corrosion inhibitors.
The causes and challenges of CUI
CUI is caused by chemical changes in the metal ions
of a surface, and is generally associated with steel
components losing material performance due to
corrosion. Corrosion damage occurs when water
comes into contact with a metal surface, from
sources such as rain or condensation. This may be
due to degradation of a protective coating, or
failures in insulation systems such as jackets, foams
and adhesives, allowing water to infiltrate the
lagging and create a ‘poultice effect’, holding in the
moisture. The microclimate and chemistry that this
closed system creates is often very different to the
local environment, and can result in an aggressive
environment that causes pitting, crevice and stress
corrosion. CUI is often difficult to diagnose, as the
problem occurs under lagging or insulation, masking
the problem until the damage is more extensive.
The challenge of identifying, repairing and
potentially eliminating CUI has been studied for
many years. Currently, inspection of the surface is
often undertaken visually during routine
maintenance, by removing the insulation, checking
the surface condition of the base material, and
replacing the insulation. If corrosion is detected,
further evaluation may be needed using localised
techniques that require skilled interpretation, such
as ultrasonic or X-ray, thermal imaging, neutron
backscatter or pulsed eddy current instrumentation.
Both inspection and evaluation techniques, however,
are expensive and time consuming, often requiring
shutdowns, while removal and replacement of the
insulation can result in damage that actually
increases potential corrosion risk. Further
complications may arise if the system being
inspected is difficult to access, while, if only a part
of the surface is checked, it may not show corrosion
just a few centimetres away.
A move from preventive to proactive inspections
has obvious economic and operational advantages,
allowing any shutdowns to be scheduled at the best
time for the business, and supporting through life
asset management. The ability to identify and
monitor corrosion damage via in-situ monitoring and
modelling would allow maintenance to be planned,
decisions about repair and replacement to be taken
at an early stage, and might even inform future design
of systems to help avoid corrosion ‘hot spots’. To
facilitate this, Frazer-Nash Consultancy, in partnership
with the University of Southampton, is developing a
new approach to monitor and manage CUI. The new
system uses electrochemical sensors and logging
technologies, plus supporting degradation and
probabilistic models, to identify the current and
future condition of metallic areas under insulation.
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Figure 3. Corrosion protection for pipework often
relies upon the use of protective coatings.
Figure 4. CUI can affect any metallic pipework or
storage tank.
Sensors and modelling: a suggested
solution
The sensor suite provided by the University of
Southampton enables measurements to be taken that
detect when metallic surfaces are wet and thus prone
to corrosion, identify metal ions with good sensitivity
November 2016 38 HYDROCARBON
ENGINEERING
and a well defined electrode response, and assess
the aggressive nature of the microclimate. As the
degradation process caused by corrosion under
insulation affects any protective systems applied to
the metal, the incubation time between coating
failure and corrosion initiation is dependent on the
material and surface condition. Once corrosion
starts, sites will continue to grow if the environment
remains stable, and active sites that grow to a
diameter of 50 - 100 µm have a high probability of
further damage, such as local general corrosion or
cracking and fatigue issues. The sensor can detect
when the local microclimate contains water and
when it is dry, so it provides a marker of when the
protective coating is initially or repeatedly
compromised, allowing a damage calculation to be
made based upon the cumulative time when the
metallic material is wet.
The accompanying corrosion modelling tool will
output estimates of both current and future
corrosion damage, indicating the confidence level
for each assessment. These assessments can then be
used in parallel with a maintenance strategy that
schedules work based on actual conditions, rather
than on a time-based inspection and repair policy.
The corrosion model is created using multiple data
sources, including information recorded by the CUI
probes and environmental monitoring sensors,
together with current and historic maintenance data.
Based upon the data gathered, plus damage
algorithms, the model can estimate current
corrosion damage, and these estimations can help to
enhance the management and control of protective
coatings, corrosion, and related structural damage.
Looking to the past, and the future
Using the historical data allows probabilistic
corrosion models to be generated: these analyse
records and estimate, on the basis of past data, the
probability of corrosion occurring again. The
resulting models can be used to quantify structural
reliability assessments and asset management
strategies across multiple types of structure, and can
make estimations for both generalised and localised
corrosion. Localised corrosion is a particular threat,
since it is often hard to detect and can be severe,
with a relatively short time frame to structural
collapse.
As well as modelling existing damage and
predicting future damage, the data recorded by the
sensor can be used to undertake life data (or
Weibull) analysis. This analysis can be used to
predict the life span of material or of a component.
Life data can be measured in hours, miles, cycles, or
any other metric that can be applied to the period
of successful operation of a particular material or
component. Since time is a common measure, life
data points are often called ‘times to failure,’ so a
prediction might conclude that the time to failure
for a pipework bracket develops within 1000 hours
of operation, or within a known time range between
1000 and 1500 hours. Life data analysis can support a
company’s maintenance planning, through estimating a
component’s reliability or probability of failure at a
given time; as well as its mean life span. Using the
sensor data to inform this type of analysis allows
assessment to be made, with confidence limits, on an
asset’s current condition and to make probabilistic
predictions of its future condition based on envisaged
operational scenarios.
Next steps
The sensor itself uses boron-doped diamond (BDD)
electrodes, made of polycrystalline diamond. The
electrodes offer long term stability and high sensitivity.
The University of Southampton has completed a ‘proof
of concept’ test on the sensor, demonstrating that it is
capable of sensing within an occluded environment that
is analogous to the environment where corrosion under
insulation occurs. It is capable of sensing for the
presence of metal-cations in tiny (nanolitre) solution
volumes, and is able to establish localised solution
chemistry.
Sensors are to be deployed on assets, following a
requirements capture process that identifies where
damage assessments need to be made. This process
involves asset mapping, breaking the asset down into
subsections and systems, and prioritising these
elements in relation to how their failure might impact
on the capability and availability of the asset. A
baseline assessment is made of the current state of the
subsection or system, and sensors and models are used
in specific degradation hotspots, with sensors in other
areas of the asset used to calibrate the damage models.
Through minimising the amount of external access and
disturbance required, the risk of damage being caused
to the insulation or surface is similarly minimised.
Conclusion
Following on from the proof of concept testing, the
sensor is now ready to be tested in real life
environments, in both the upstream and downstream
sectors. Data will be gathered in these environments,
which can be used to substantiate the value of the
modelling software. Positive results in this testing stage
will enable the sensor to be commercially launched, to
benefit the downstream industry's fight against CUI.
References
1. WOOD, M. H., VETERE ARELLANO, A. L. and VAN WIJK, L.,
Corrosion-Related Accidents in Petroleum Refineries:
Lessons learned from accidents in EU and OECD countries,
European Commission Joint Research Centre Scientific and
Policy Reports, EUR 26331 EN, 2013, http://publications.jrc.
ec.europa.eu/repository/bitstream/JRC84661/lbna26331enn.
pdf.
2. KOCH, G., et al., International Measures of Prevention,
Application, and Economics of Corrosion Technologies Study,
NACE International, 2016, http://impact.nace.org/.
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 PUMP
UP THE
VOLUME
Pharic Smith, Sulzer, UK,
and Thomas Kraenzler,
Sulzer, Switzerland,
examine the maximisation
of pump efficiency through
reduced corrosion and
erosion, allowing users to
enhance productivity and
reduce running costs.

T
he latest pump designs and coating technologies
offer significant improvements in the long term
performance of industrial pumps. Continued
research into the processes that degrade pump
performance is being matched by the development of
better application techniques for protective coatings. By
gaining a better understanding of both the pumping
process and the factors that affect it, end users can make
significant improvements in their maintenance strategies.
Affected applications
Almost every industrial process involving liquids will
include a pump at some point. From deep sea oil and gas to
DNA sequencing, pumps are required to perform a vast
range of tasks. However, no matter what the design or the
size of the pump, central to every application is reliability
and efficiency – minimising downtime and running costs is
essential to modern industry.
For those working with large industrial pumps, often
operating in harsh environmental conditions, maintaining
pump performance in the face of a continuous threat from
corrosion and erosion can be a particular challenge. With
increased knowledge of these processes and the
techniques used to tackle them, it is possible to implement
a more cost effective pump refurbishment programme.
Corrosion
Corrosion is commonly defined as a chemical reaction
between the component surface and the reacting fluid
passing through a pump. In general, a distinction is drawn

HYDROCARBON 41 November 2016

ENGINEERING
 between general or uniform corrosion and localised
corrosion such as pitting and crevice corrosion. Non‑stainless
materials suffer mainly from uniform corrosion, whereas
metals forming oxide layers that adhere to and passivate the
surface are prone to localised corrosion.
Figure 1. Coating technologies offer improved
performance and durability.
Figure 2. In situations where erosion-corrosion
is evident, specialised coatings may be the best
solution.
Figure 3. In order to prevent erosion-corrosion issues,
specialised coatings can provide a safe solution.
November 2016 42 HYDROCARBON
ENGINEERING
Flow accelerated corrosion
Flow accelerated corrosion (FAC) describes the removal of
the protective oxide layer on a metal. The speed of this
process is affected by the oxygen content, the flow
velocity and, to some extent, the chloride content. The
formation of a calcareous layer due to high carbonate
hardness of the water reduces, or can even prevent, FAC.
The influence of oxygen can be seen in the following
example: water with an oxygen content of less than
20 parts per billion (ppb) and a flow velocity of around
15 m/sec. will typically see a corrosion rate of around
0.01 mm/y. However, increased oxygen content can see the
corrosion rate rise to several mm/y, which will present a
significant challenge to the process.
Fortunately FAC only poses a real issue for low carbon
steels and cast iron. Increasing the chromium content or
using stainless steel will largely eliminate the vulnerability
to flow accelerated corrosion.
Erosion
Pumps that are used to transfer fluids containing abrasive
substances, such as sand, can experience significant levels
of erosion, especially in areas with high flow velocities. This
can be seen in the oil and gas industry where injection
pumps are employed to force water back into the oilfield
and, thus, maintain the pressure, which is needed to lift the
oil to the surface. The entrained sand particles act as an
abrasive and the high working pressures only serve to
compound the issue.
From a pure design standpoint, pump manufacturers in
this field effectively have two options to minimise the
erosion:
nn Reduce the flow velocities in every part of the pump.
nn Design the pump in such a way that the flow velocities
through the close running clearances are low.
However, in most cases, the specifications required for
the application will prevent either of these solutions from
being implemented. Coatings with high erosion resistance
in selected areas of the pump are a proven solution in
these applications.
Erosion-corrosion
In operating conditions where both erosion and corrosion
are present, the degradation mechanism can become very
complex and depend on the type of substrate and fluid
chemistry. Corrosion may create oxide layers with low
adherence to the substrate, which is prone to erosion, or
erosion may damage the passive layer, leading to an
activation of the surface, which accelerates corrosion. In
this case, surface protection regimes are often the best and
sole option.
Cavitation
Most commonly seen on the pump impeller, cavitation is
caused by a pressure difference, either on the pump body
or the impeller. A sudden pressure drop in the fluid causes
the liquid to flash to vapour when the local pressure falls
below the saturation pressure for the fluid being pumped.
Any vapour bubbles formed by the pressure drop are swept
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This capacity increase will not affect the existing turndown range of Merichem units and will improve the turndown of other
units. The new contactor is a direct “drop-in” replacement that can be added or switched with minimal modifications within
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Figure 4. Cavitation damage should be prevented by
changing the pumping system characteristics.
Figure 5. Where cavitation is unavoidable, a bespoke
coating system should be used.
along the impeller vanes by the flow of the fluid. When the
bubbles enter a region where the local pressure is greater
than saturation pressure, the vapour bubbles abruptly
collapse, creating a shockwave that, over time, can cause
significant damage to the impeller and/or pump housing.
In most cases, it is better to prevent cavitation rather
than trying to reduce the effects on the pumping equipment.
This is normally achieved by one of three actions:
nn Increased suction head.
nn Lowered fluid temperature.
nn Decreased net positive suction head required (NPSHR).
For situations where cavitation is unavoidable, or the
pumping system suffers from internal recirculation or
excessive turbulence, it may be necessary to review the
pump design or minimise the potential for damage using a
bespoke coating system.
Appropriate material selection
For pump manufacturers, the key is to mitigate the
corrosion problems by using the most appropriate base
material in the construction of the pump. For applications
where the use of carbon steel or cast iron is preferred, due
to cost reasons, the corrosion rate can be estimated very
November 2016 44 HYDROCARBON
ENGINEERING
accurately. Based on the mutually accepted corrosion rate
per year, the service life of the pump can be anticipated
and factored into the maintenance costs of the application.
If the expected corrosion rate is not acceptable, the
pump materials have to be upgraded to stainless steels,
which leads to higher costs. In cases where this cost
increase is prohibitive, the alternative is to use advanced
coatings that can be tailored to suit each application.
If stainless steel is selected for an application, the
expected service life is much longer, in some cases infinite.
However, this is only true as long as the appropriate
stainless steel grade has been chosen for the specific
application, it has been produced carefully and is used
within the agreed fluid specifications. Special care is
required as soon as particles are introduced into the fluid.
In this case, even stainless steel becomes susceptible to
corrosion due to the passive layer being damaged and the
base material becoming activated, which then starts to
corrode. Normally the passive layer can be re-established,
but if the chloride content is too high or the pH level is too
low, the material may remain in an active state and the
corrosion continues. Another frequent cause of corrosion
in stainless steel pumps is stagnant conditions caused by
process interruptions or intermittent operation.
A further threat for stainless steel is chlorine, which is
used to combat biological growth in the pump or
connected pipelines. Low level concentrations, around
2 ppm, will have little impact on stainless steel, but it is
important to understand how and where the chlorine is
introduced into the water flow, to avoid spot
concentrations that will damage the protective layer.
Unexpected corrosion can easily negate the anticipated
improvement in durability of stainless steel compared to
the much cheaper carbon steel variant.
Protective coatings
It is important to determine if the application of coatings
will actually improve the performance and service life of
the pump in the first instance, and if the costs are really
lower than a materials upgrade. In most cases, pump
manufacturers aim to meet the requirements of a process
by using the most appropriate materials for the application
and use coatings only as a backup solution.
Polymeric coatings, such as fusion bonded epoxy, can
be applied to pump components using a fluidised bed or
electrostatic coating. They provide a good level of
corrosion protection as long as the coating is not damaged.
Being a polymer coating, it is limited to low flow
conditions and normally used in clean water applications
where it may also improve the hydraulic performance by
smoothing the pump surfaces.
However, coatings that are appropriate for pipelines may
not be suitable for pump applications where the flow
velocities are much higher, narrow passages concentrate the
flow and moving parts can be difficult to protect. Again,
some methods, such as galvanic protection, commonly used
in pipework, are largely unsuitable for pumps.
In these cases, coatings are applied to specific areas
where increased flow rates are expected or at points where
impact damage is expected, such as 90˚ bends. A hard layer
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Figure 6. Working closely with experienced materials
engineers enables the end user to achieve the most
appropriate solution.
is usually applied using a spray coating method such as air
plasma spraying (APS), or high velocity oxygen fuel (HVOF)
– which one will depend on the required coating thickness
and composition.
Carbide coatings, which are deposited by using a high
velocity oxy-flame, are extremely wear resistant. Tungsten
carbides in combination with cobalt, nickel or
cobalt‑chrome matrices are used, preferably. Thanks to
improvements in the powder and the thermal spray
processes, the materials combine high wear resistance and
toughness with good corrosion resistance. Thermal spray
coatings can be applied to most substrates, but it is a ‘line
of sight’ process that makes the coating of complex shaped
components, such as impellers, difficult.
Chemical vapour deposition (CVD) processes, which are
used for complex components that are difficult to coat
with thermal spray, create very hard surface layers, but are
conducted at temperatures in excess of 850˚C. These high
temperatures limit the selection of possible substrates,
because structural changes and partial deformations can
take place during the cooling stage.
Not all coatings are the same
The improvements in performance and durability, afforded
by coating systems, have given rise to a large number of
businesses offering a coating service. The raw materials and
the basic equipment can be acquired relatively easily and
used to apply coatings to a range of equipment.
However, the quality of an HVOF coating, for example,
depends predominantly on the spraying parameters, such
November 2016 46 HYDROCARBON
ENGINEERING
as the material temperature, application velocity,
application rate and the quality of the equipment used.
Coatings such as these take time to apply correctly, which
will inevitably impact on the final cost of the
refurbishment. However, increasing the deposition rate will
increase the stresses within the coating, which over time
can cause the coating to degrade and fail prematurely.
The procedures and settings used by companies such as
Sulzer and its coating suppliers have been developed over
many years, applying extensive knowledge and experience
to the process is the only way to improve it. The final
procedure for each coating is closely guarded, proprietary
information ensuring that every client will receive the same
quality of coating across the world.
To illustrate the importance of these procedures,
especially in pump applications, consider the process of
installing and removing an impeller. In many situations, the
impeller is heated to allow it to be installed or removed
from the drive shaft. This shrink-fit procedure can cause
inappropriate coatings to be damaged during a routine
maintenance operation. Sulzer has ensured that its coating
technologies can withstand this thermal shock and
continue to deliver long lasting corrosion protection.
Maintaining legacy equipment
Modern coating technology can be applied to legacy
equipment as part of a refurbishment programme that will
extend the service life of a pump. Implementing a new coating
as part of a refurbishment project can significantly improve
the performance and reliability of existing equipment.
Ultimately, the key to a successful corrosion prevention
scheme is to fully understand the application and to use all
the available information to determine the most
appropriate action. Working closely with experienced
materials engineers enables the end user to achieve the
most appropriate solution.
For those looking to refurbish an existing asset, there
are a number of potential improvements that can extend
the service life and improve the performance of a pump. If
a new pump design is required, there is an opportunity to
establish not only the most appropriate base material, but
also the best coating system for extended durability.
Conclusion
As coating technologies continue to advance, end users will
be able to select bespoke coatings that can be applied
during the manufacturing process. However, even with the
most advanced coating, there is a need to develop an
application process that can be used to apply the coating to
the complex internal surfaces of a cast impeller and volutes.
As such, this remains the ‘holy grail’ of pump design and,
once this challenge is overcome, the reliability and service
life of industrial pumps will be further improved.
Improvements in service intervals means reduced
maintenance costs and reduced costs attributed to lost
production. Together with improved efficiency, these costs
of ownership can be minimised through the appropriate
use of base materials, protective coatings and the
implementation of better pump design to deliver a
comprehensive and cost effective pump solution.
 Norman Zombor, NETZSCH Canada, Inc., Canada, discusses the
continued development of sealing technology for progressive
cavity pumps applied in challenging hydrocarbon environments.

PROGRESSIVE
PUMPS

P
rogressing cavity (PC) pumps have become the
standard for challenging oil and gas applications,
where aggressive media can wear and corrode
pumps, reducing their lifespan. Due to the
rotor‑cavity design and very low speed action, potential
solids and abrasives can comfortably pass through the
pump following the oil path containing these
particulates. This makes PC pumps the best option for
pumping viscous media, such as oilsands. New sealing
technology ensures that the pumps are leak free and
present the visually clean appearance that is now
required by worldwide regulations.
Unique pumping challenges face
downstream oil and gas applications
Oil is inherently an aggressive liquid, containing a variety
of chemicals, typically hydrogen sulfide (H2S), which is
sour and very corrosive. In northern Canada’s oilsands,

HYDROCARBON 47 November 2016

ENGINEERING

Figure 1. NEMO SY pump for 50 - 240 gpm,
345 - 525 psi, GVF: 35% for multiphase oil, water and
gas media.
Figure 2. NEMO SY pump for 9 - 95 gpm,
420 - 600 psi, GVF: 32% for multiphase oil, water and
gas 20 - 30% media.
Figure 3. NEMO SY pump for 195 - 415 gpm, 270 psi,
GVF: 85% for multiphase water, gas, crude oil and H2S
media.
November 2016 48 HYDROCARBON
ENGINEERING
there may be a high volume percentage of sand
contained in the heavy crude oil, which can be quite
expensive to remove. In order to remove the sand from
the oil one has to steam it, get the oil to rise to the top,
and skim it off in a steam assisted gravity drainage
(SAGD) process.
PC pumps are an ideal solution for these aggressive
oil and gas fluids and oilsands. The pumps convey the
hydrocarbon media using a rotor that turns in an
oscillating motion within a fixed stator. The
geometrical mating of the rotor and stator forms
conveying chambers. The pump’s single helix rotor with
a double helix stator always creates an open cavity,
allowing the process to be progressed or pushed
forward. As the rotor turns in the stator, the medium is
transported from the inlet to the chamber's discharge
side. This geometry reduces pulsation and shear forces,
avoiding emulsion effects with oil-water mixtures,
which have the potential to significantly hinder
subsequent mixture separation. This makes PC pumps
the best solution for handling mixtures of oil, water
and gas, along with sand content.
While the basic PC pump technology has not
changed in many years, what has changed is the new
pump sealing technology, developed in response to
worldwide environmental rules regulating leaks and the
appearance of oil stains. Today’s environmental rules
stipulate that any kind of cosmetic stain, even on
cement, is unacceptable. For example, a mechanical seal
chamber allows for a large variety of mechanical seal
types, including single, double, or cartridge design. The
seals are typically designed in accordance with the latest
edition of API Standard 682, ‘Pumps, Shaft Sealing
Systems for Centrifugal and Rotary Pumps’.
Another innovative modification recently introduced
is a full service in place (FSIP) version of the block design
PC pump. This design enables users to service the
PC pump by disassembling the split connecting rod and
lifting the rotor-stator assembly upwards, leaving the
pipe manifolds completely in place.
Other higher speed pump options have been used
(mainly centrifugal pumps), but these have resulted in
industry wide concern over extreme premature wear of
mechanical seals, impellers and shafts. For example,
some centrifugal pumps can operate at an average speed
of 1800 revolutions per minute (rpm) or higher,
compared to the 250 average rpm for a PC pump. The
progressing cavity pump’s slower speed results in a very
low shear action, combined with a progressive push by
the rotor-stator. This design combination will not mix or,
potentially, froth the oil, similar to what occurs with
centrifugal pumps. In addition, the slower speed means
the rotating element does not wear prematurely. This
longevity is a definite advantage, particularly with
remote pump stations.
Choosing PC pumps
A number of Canadian producers and processors have
selected progressing cavity pumps for especially
challenging oilsands applications. For example,
NETZSCH worked with a large integrated energy
company on one project near Fort McMurray, Alberta,
with estimated reserves of nearly 4 billion bbls of
bitumen. The company was using in-situ steam assisted
gravity drainage (SAGD) technology to recover the
bitumen, with minimal surface land disturbance. Steam
injected into the reservoir heats the bitumen so it
moves more easily, allowing it to be pumped to the
surface.
NETZSCH supplied a number of NEMO® BY Series
(API-676) PC pump packages for several aggressive
applications, including de-sanding slop oil and for use
on froth pumps. The company engineers in Canada
Figure 4. NEMO SY pump for 1136 gpm, 258 psi,
determined that the heavy duty block construction diluent with various viscosities (API-676) -8 to -13˚F
PC pump, with a direct coupled drive, would be the low temperature.
perfect design configuration for the application. The
pumps were used to skim oil off the top of the tanks in
the tank farms where oil was stored. The pumps had no higher starting and running torque values, as well as
problem handling water, oil and sand – in whatever larger flow and pressure requirements, and is
proportion they occured. They also pumped oil in implemented in some of the world’s larger PC pumps.
which gas was entrained, as well as oil that foams or PC pumps can run in either direction, making them
froths. Whatever stage the liquid was in when it arrived one of the more popular choices in the downstream
in the pipe, and whatever the thickness or viscosities sector when loading terminals that use local flow
present, the pumps handled the liquids and kept on meters to accurately measure crude oil, or, more
processing. importantly, for expensive additives used in the
NETZSCH also supplied a number of PC pumps for the oilsands process. The pump’s very low shear and pulse
Japan Canadian Oilsands (JACOS) Hangingstone SAGD action make it very suitable for this particular application.
project, located southwest of Fort McMurray
and west of Anzac. The JACOS Hangingstone
SAGD demonstration facilities have been in
operation since 1999. The operations provide
approximately 6000 bpd of bitumen
production from 24 well pairs. Moving Energy Forward
The NEMO BY Series block design
PC pump used in the above examples has
been the workhorse configuration, but there
are other widely used PC pumps available to
use for hydrocarbon applications and
processing. For example, the NEMO® BT
series, a vertical mount PC pump used for
many process sump applications, can also be
used for emptying barrels, tanks and pits, or
where there is limited space and a danger of
cavitation present. Additionally, these pumps
are suitable for emptying barrels containing
materials that are hazardous to water and the
environment.
Ideal solutions for upstream, midstream
Another example of PC pump technology and downstream
is the NEMO® SY Series heavy duty bearing
frame horizontal PC pump, which is used for As an expert manufacturer of downhole and surface
much larger process applications. This design pumps, we produce oilfield pump systems according to
has a bearing housing with a free input shaft the highest quality standards. The viscosity of your crude
pump that can be run with any type of drive, oil or its percentage of gas or sand makes no difference to
including servo motors, diesel motors or the NETZSCH progressing cavity pumps. We provide pump
hydraulic drives. This pump can also handle designs that have proven reliability, operational safety and
high pressure applications, and is suitable for low lifecycle costs. Please call regarding API confirmity.
all industrial markets where low to
mid‑viscosity and/or shear sensitive, abrasive
or adhesive substances must be safely and
gently handled. The PC technology has
www.netzsch.com
Hydrocarbon
Engineering App

Figure 5. NEMO SY pump for 1000 gpm, 200 psi,

diluent with various viscosities (API-676) -8 to -13˚F
low temperature.

Tried and tested

Over the years, end users have experimented with
peristaltic, centrifugal, or other positive displacement
pumps for oilsands and other oil pump processes.
However, most return to the PC pump for the highly
challenging pumping applications, and they have
largely been accepted as the industry standard.
For example, NEMO progressing cavity pumps have
been designed to handle mixtures of oil, water and
gas, along with sand content, and can achieve
conveyance rates of complex media of up to
353 ft 3/min. This allows media to be pumped to
central collection points, where it can be separated
with lower infrastructure costs than are incurred with
traditional pumping solutions. The pump offers high
pressure capability without valves, and includes a
mechanical seal positioned in the path of the product,
eliminating the need for flushing.
NETZSCH Canada application engineers can

Read the latest evaluate and size the pump best suited for pumping
clean oil, for use in downstream processing
applications, or crude oil, using proprietary software

issue on the go that can evaluate application specifics. Canadian

application specialists are also particularly
conservative when selecting pump speed and size for
oilsand applications, due to the aggressive oilsands
process. This is a welcomed design standard in the
industry.

Conclusion
Over the years, end users have experimented with
Download the free app for peristaltic, centrifugal, or other positive displacement
Apple and Android devices: pumps for oilsands and other oil pump processes.
www.hydrocarbonengineering.com/ However, most return to the progressing cavity pump for
hydrocarbon-app these highly challenging pumping applications, and they
have largely been accepted as the industry standard.
Canadian application specialists are particularly
conservative when selecting pump speed and size for
oilsand applications, due to the aggressive process. This is
a welcomed design standard in the industry.
Mike Northwood, Paladon Systems,
UK, explains how high integrity
pressure protection systems can help
downstream oil and gas operators
to improve plant processes and
increase efficiency.

FEELING THE
PRESSURE

H
igh integrity pressure protection systems,
more commonly referred to as HIPPS, are
designed to rapidly close block valves in the
event of an over pressure event in order to
protect personnel, the environment and downstream
equipment. The HIPPS will isolate the source of the
high pressure before the design pressure of
downstream equipment is exceeded.
HIPPS are a feasible and practical solution for the
following reasons:
n The risk of over pressurisation.
n Environmental restraints.
n Extreme high pressures and flow rates.
In addition to the above practical benefits, HIPPS
also offer operators the following economic benefits:
n Reduced cost and weight in the piping and other
downstream equipment from the HIPPS.
n Increased capacity in the flow lines.
n Reduced storage and transportation costs for flow
line media.
n No requirements to upgrade the flare systems and
pressure relief manifolds.
Equally, and from an environmental perspective,
which is a particular concern for modern day
operators, HIPPS reduce and often completely

HYDROCARBON 51 November 2016

ENGINEERING
 application, the most common type of
block valves used are trunnion mounted
double-block and bleed ball valves, as
they have higher reliability and lower
operating torque requirements when
compared to other types of ball valves.
Often, end users will specify a preferred
manufacturer.

Valve actuators
The valve actuators can be either
pneumatically or hydraulically powered;
Figure 1. Schematic showing the major components of a typical HIPPS. however, this article will focus on
hydraulically powered HIPPS since they
have better controllability, produce less
noise during operation, and are lighter
and more compact than pneumatically
powered HIPPS. Scotch-yoke valve
actuators are most often specified as
their torque output characteristics
closely match the operating torque
requirements of ball valves. Spring‑return,
fail-close valve actuators are always used
as they will reliably close the block
valves on command, on loss of command,
on loss of electrical power, and on loss
of either the pneumatic or hydraulic
supply.
The valve actuators will be CE, PED,
SIL and ATEX certified and will typically
be required to force the block valves
closed within two seconds of an over
Figure 2. A traditional procurement cycle for HIPPS. pressure event.

Hydraulic control system

Leading designers and manufacturers of
HIPPS typically employ manifolded
hydraulic control systems. When
compared to piped surface mounted
designs, manifolded systems:
n n Are more compact, allowing for
Figure 3. An optimised procurement cycle for HIPPS. easier access to components requiring
local control.
n n Increase reliability by reducing the
eliminate the requirement for the installation and costly maintenance of number of fittings and subsequent
pressure relief valves, and the emission of gases. possible leak paths.
SIL 3 certified HIPPS comprise a number of various components and n n Increase ruggedness by eliminating
exposed and fragile piping.
instruments, including the principal items, as shown in Figure 1.
These items, together with others as required, are designed in such a n n Reduce and simplify maintenance
activities.
manner in order to protect against overpressure incidents, or to
drastically reduce the possibility. It is important to understand that a
HIPPS includes all the components necessary to reliably achieve the Partial stroke testing
valve failure position. Whilst this is part of the hydraulic
Turnkey HIPPS suppliers, such as Paladon Systems, manufacture and control system, partial stroke testing
supply the complete package together with all the documentation (PST) forms a large part of the integrity
required for an SIL 3 certified HIPPS. and performance of a HIPPS system. Right
at the very start of Paladon Systems’
Block valves HIPPS design stage, discussions with
Two block valves are supplied in series to increase reliability. Although leading instrument engineers throughout
the end user specifications for HIPPS are often unique for each specific the world were initiated to determine

November 2016 52 HYDROCARBON

ENGINEERING
Process Notes

This exchanger is a victim of its design.

Opportunity or Annoyance?
Price differentials between conventional and opportu-
nity crudes compel refiners to process increasing per-
centages of lower valued opportunity crude. However,
as many refiners have learned the hard way, opportu-
nity crudes are tied to unique processing challenges.
Furthermore, existing crude unit configurations may
limit high-profit opportunity crude to a disappointingly
small proportion of the total unit blend.
Over the course of 20 years, Process Consulting Ser-
vices has completed more than 130 revamp and grass-
roots designs supported by over 75 detailed test runs.
An extensive collection of test run equipment perfor-
mance data and feed/product analyses enables confi-
dent prediction of real-world opportunity crude perfor-
mance. PCS has enabled refiners worldwide to extend
crude unit run lengths from months to years while im-
proving yields and operability.

Processing a changing slate of opportunity crudes of

varying compositions requires a CDU/VDU design that
is flexible, reliable, and commercially proven. A good
design must control chronic problems associated with
many of these crudes including corrosion, exchanger
fouling, tray plugging, vacuum heater and wash bed
coking, and unreliable product quality prediction. CDU/
VDU designs for challenging crudes should be based
on proven best-practices rather than simply on a low-
CAPEX strategy. For example, a poorly designed heat
exchanger may operate well initially, but high foul-
ing will quickly lower efficiency and eventually limit
throughput. Up front investment in engineering expe-
rience and know-how pays dividends when units meet
Test run feed and product samples
capacity and run-length targets.

3400 Bissonnet St. +1 (713) 665-7046

Suite 130 info@revamps.com
Houston, TX 77005, USA www.revamps.com

Figure 4. A typical skid mounted HIPPS assembly.
Figure 5. HIPPS assembly showing the internal
components of the block valves and valve actuators.
their opinions on the ‘best in class’ approach to this
important feature.
The overall universal opinion was that PST is only
of use if the information obtained is both accurate
and acted upon. Essentially this means that if a
problem arises, operators need to take action before
the problem can escalate into a serious operational
issue.
To meet the specific operating requirements as
stated by the instrument engineers, Paladon Systems
embarked on designing its own smart PST device, the
PST Controller. When the HIPPS is first commissioned,
a PST is initiated and various parameters such as the
valve actuators’ operating pressures and valve stroking
times are recorded – either on the controller internal
memory, or they are sent to an external storage
device. Collectively, these parameters are called the
HIPPS signature. By recording the HIPPS signature
when the system is first installed and, therefore, when
it is operating at optimum performance, any future
PST can be compared to the signature to identify any
deviations in the parameters. Operators can easily
observe any deviations and trends in the parameters
and take preventative maintenance activities well
before the HIPPS’ performance is compromised.
November 2016 54 HYDROCARBON
ENGINEERING
Although many HIPPS suppliers use one of the two
emergency shutdown (ESD) solenoid valves for PST, it
should be recognised that PST is a maintenance issue
and not an ESD one. As such, leading HIPPS suppliers
will isolate the PST from the ESD function, whilst
ensuring that any ESD operation will always override a
PST.
The fundamental reason for separating the PST and
ESD functions is that the operating times necessary for
each function are very different.
Many ESD operations need to be completed in two
seconds, or even less. Considering that during an ESD
event a block valve is always closed on the valve
actuator’s spring stroke, the block valve closing speed
is determined by how quickly the ESD solenoid valves
can vent the hydraulic fluid from the valve actuator’s
hydraulic cylinder. To achieve rapid block valve closure,
ESD solenoid valves have to support very high volume
flow rates.
A typical PST will close a block valve about 10 - 15%
of its total travel before fully reopening it. If an ESD
solenoid valve is designed to fully close a block valve in
two seconds during an ESD operation, and is also used
for PST, then the solenoid valve would close a block
valve by 10% in only 200 milliseconds during a PST. Such
a rapid PST not only makes it very difficult to accurately
record any parameters, but also carries the real risk of
over‑running the 10% block valve closing position –
upsetting the process conditions at best, and completely
closing down an entire installation at worst.
By separating the ESD and PST functions, PST can be
conducted at a far more controlled time to avoid the
above issues.
The question then arises as to how a check can be
made on the solenoid valves used for the ESD function.
In reality, and as two valves are used for SIL 3 certified
HIPPS, this testing should not be necessary, particularly
if these valves are fitted with a manual reset function.
However, if ESD solenoid valve testing is required,
advanced smart PST devices allow the ESD solenoid
valves to be pulsed to check for solenoid valve
operation without disturbing the rest of the system.
Interlocking manifold assembly
This assembly comprises three two wire electronic
pressure transmitters (4-20Ma) with a 2003 voting
system, with communication to the logic solver. The
pressure transmitters will have self-diagnostics and be
programmed to signal a specific failure position.
Logic solver
The logic solver can be either a solid state
programmable logic controller (PLC) or hard wired
relay logic. They are responsible for processing the
various signals on the basis of preset information and
signals from the pressure transmitters and any other
devices, as required by the safety analysis and cause
and effect logic, to determine when to initiate
shutdown of the block valves. To prevent spurious
closure of the block valves and the resulting costly loss
Pictured in the background:
3D layout detail of Cyclones and Plenum in a
jig stand from a recent turnaround project.

Behind every
Turnaround
you’ll find
obsessive Months before your turnaround or revamp begins, our
preparation. experience and knowledge goes to work. Constructability. Plan
development and optimization. Rigging studies. AutoCAD
Our customers benefit imaging. It’s all part of our obsessive approach to a job well
with enhanced safety, done. Add our experienced and proven project teams, and you
quality, and productivity. can see why AltairStrickland is an industry leader.

How can we prepare for your

next Turnaround?

altairstrickland.com
turnarounds@altairstrickland.com
800.478.6206

CRITICAL PROJECT EXECUTION FOR THE REFINERY AND PETROCHEMICAL INDUSTRIES

 of production, logic solvers are designed with
redundancy and voting logic. Should a single logic
solver channel fail, an alarm will be generated on the
human machine interface (HMI).
Certification
With regard to the certification, and to be in
accordance with IEC61508/11 and meet the SIL 3
requirements, the complete system must comply with
both the requirements and constraints. Paladon will
provide this with third party certification. Electrical
certification will be Exd 11C T6 ATEX and IECEX.
Reducing the cost of HIPPS
procurement
The traditional procurement cycle of HIPPS has
required end users and engineering, procurement and
construction (EPC) companies to source components
from multiple suppliers and then internally conduct
the safety analysis on the complete system to ensure
compliance and certification up to SIL 3. As shown in
Figure 2, the project management of numerous vendors
can be a complex and time consuming process for
procurement departments, and the SIL 3 calculations
and certification activities require end user or EPC
resources from multiple
engineering disciplines. In
an effort to save costs and

Your EHS Issues are Our Issues

improve budget
management, over the last
20 year or so, most end
users and EPC companies
We support your operations from every angle to ensure began to subcontract many
effective EHS strategy and streamlined EHS data management of the procurement and
engineering activities
traditionally conducted
Consulting Software Technology internally. This trend
> Environmental impact > BREEZE® EHS > EHS information towards outsourcing has
assessment modeling software management solutions increased demand for
> EHS permitting and > Air dispersion, fires, > Business requirements suppliers to provide turnkey
compliance management and explosions analysis solutions for many types of
> System selection systems, including HIPPS.
> Air quality studies > Model-ready
and implementation Figure 3 illustrates just
> Emissions quantification meteorological
how much more time and
and terrain data > Enterprise, custom,
cost efficient the process is
and mobile solutions
for end users and EPC
companies procuring
Professional EHS Training
turnkey HIPPS when
Topics include: compared to the traditional
> Air Quality Basics for Oil & Natural Gas Field Operators procurement cycle.
> Air Quality Permitting and Compliance for
Oil & Gas Operations (location specific)
Conclusion
End user economic and
> Clean Air Act Workshop for the Oil & Natural Gas Industry environmental concerns are
> Clean Air Act Workshop for the Petroleum Refining Industry rapidly driving the increased
adoption of HIPPS as the
> Compliance Management for Fugitive Emissions and LDAR
solution of choice for many
for the Oil & Natural Gas Industry
critical over pressure
protection applications.
Additional courses are available. Learn more and register at trinityconsultants.com/training
Traditionally the
or +1 (972) 661-8100. SAVE 25% on course fees with the discount code “HE25.”
procurement of HIPPS has
been a very expensive and
time consuming process;
however, with several
companies now being able
to offer a single point of
contact for the supply of
turnkey HIPPS, it has never
been easier for end users to
enjoy the economic,
operational and
environmental benefits that
they provide.
trinityconsultants.com | +1 (972) 661-8100
North America | Europe | Middle East | Asia
A study in
Julie Bodine,
ValvTechnologies, Inc.,
USA, explains how
effective and innovative

solutions
valve design and proper
implementation can
increase process safety,
reliability and efficiency.

T
he oil and gas industry continues to confront
some of the most difficult valve application
challenges. Companies are required to address
environmental concerns regarding emissions,
human resource concerns around safety, as well as
increasingly demanding regulatory requirements, to name a
few. Out of these challenges comes greater demand for
high performance products, services and technical
expertise that ensures these concerns are first understood
and then addressed in the most reliable and cost effective
manner.
The following case studies highlight how innovative
valve solutions, technical expertise and experience, and a
total focus on the needs of the customer can help to
improve operations, address regulatory concerns and
ensure the safety of the plant and personnel in various
downstream and chemical processing industry
applications.
Case study: challenging refinery
processes
The delayed coker process is crucial to a refinery’s
profitability. Coking is one of the most hostile
environments in the refinery, with process temperatures
of 1000˚F/538˚C, that yields a very abrasive and erosive
coke byproduct. In this application, valves are cycled
more frequently than those in other parts of the refinery
and failure can cause complete unit shutdown. A refinery
in Canada realised these costs first hand when the
facility's plug valves were locking up on a routine basis. A

HYDROCARBON 57 November 2016

ENGINEERING

Figure 1. ValvTechnologies’ zero leakage high
performance metal seated ball valve for coking
applications.
Figure 2. Zero leakage valve solutions.
Figure 3. ValvTechnologies’ HVOF RiTech®, Robotically
Integrated Technology, for high performance valves.
unit shutdown was required to remove the upper bonnets
and steam internals in order to free the debris and allow
the valves to function properly. Unit shutdowns were
becoming routine and very costly.
The delayed coker process is a batch process – one of
a few in the refinery complex. The process of switching
from one drum to another requires a complex series of
events that must take place in perfect sequence in order
to avoid major equipment damage. The coker feed (a
liquid-vapour combination) is heated in a large furnace
and then directed into a preheated coke drum for
November 2016 58 HYDROCARBON
ENGINEERING
cracking and product separation. Delayed cokers are
designed as a pair of drums so that one drum can be
prepared for the next cycle while the other drum is in
operation. This critical application requires valves to cycle
on a regular basis, which necessitates high reliability.
Operating temperatures vary drastically and state change
(coke formation) can occur as the process flows through
the switch and various isolation valves. The main
challenge for this refinery was related to the existing
valves locking up and leaking due to their inability to
handle the abrasive feed.
The ValvTechnologies’ purge system is a preventative
solution that removes the heavy hydrocarbon from the
valve cavity before it has the opportunity to change state.
This purge system is recommended for coker valves above
8 in. ValvTechnologies was given the opportunity to
provide a test valve in the Canadian refiner’s coker unit.
However, the company was concerned about adding
steam to the process and chose not to incorporate the
purge system. Without it, there were some initial issues to
overcome to ensure the valve functioned as expected.
Even without the recommended purge system, the test
valve was outperforming all of the plug valves that were
in operation at that time. As a result of this test, six valves
were ordered to replace the other plug valves. The
company eventually incorporated the purge system, and
the valves continue to provide trouble free operation
today.
As a result of installing a reliable valve with the proper
purge system, the facility has realised an increase in
operational efficiency. In light of the cost savings
achieved as a result of the improved efficiency, the
company was awarded the next delayed coking project at
this location.
Case study: meeting unique
requirements
NatureWorks is the first company to offer a family of
commercially available, low carbon footprint IngeoTM
lactides and biopolymers derived from 100% annually
renewable resources, with performance and economics
that compete with oil-based intermediates, plastics and
fibres, and provide brand owners with new cradle to
cradle options after the use of their products.
NatureWorks contracted Plant Services, Inc., based in
Spring, Texas, which specialises in process engineering, to
specify and locate a suitable solution for an existing
control valve application. NatureWorks was experiencing
ongoing problems with its existing valve, which was
installed in 2008 and failed to meet process application
requirements due to galling on the ball and seats,
resulting in poor reliability.
NatureWorks required a valve that could be
modulated to control back pressure and provide tight
shut off when closed. The goal was to find a valve that
would meet the specifications and provide tight shut off.
Plant Services specialists researched numerous
manufacturers for a suitable valve for this extremely
severe service application and ValvTechnologies was
willing to produce a valve to the specifications required.
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Figure 4. Aftermarket service and repair is crucial to
support the industry’s most difficult challenges.
The company selected ValvTechnologies’ RiTech® coating
technology and V1-2 metal seated ball valve design, and
were very satisfied with the quality assurance/quality
control (QA/QC) and stringent zero leakage testing
performed.
A 24 in. 300 lb metal-seated V1-2 valve was designed
and manufactured by ValvTechnologies, and a hydraulic
Moog actuator, hydraulic power unit (HPU) system and
the automation were designed by Donald Marek and
fabricated by Control Fluids, Inc. of Beaumont, Texas. The
Eads Company, a ValvTechnologies distribution partner
and integrator, provided the package as a complete
system and facilitated the final product acceptance test
prior to delivery to NatureWorks.
Case study: teamwork builds success
Aftermarket service and repair is also crucial in the
effort to ensure customer’s concerns are addressed and
plants are properly maintained and continue to run
safely and reliably, ensuring lower total cost of
ownership.
During a scheduled outage, a large plant discovered a
valve that would not move. Upon further inspection the
customer found a damaged coupler on the valve’s
mounting bracket. Assuming this damaged coupler was
causing the valve to lock up, the company decided
against purchasing a new valve and instead simply
replaced the damaged mounting bracket. Preparing to go
back online, the company found that the valve would
still not function.
Planning for outage season can be difficult enough
without an unexpected setback or unplanned
costs. Unplanned shutdowns cost plants millions of
dollars; to prevent paying this high cost, an immediate
shipment of a ValvTechnologies' V1-1 zero leakage metal
seated ball valve was required to avoid extended plant
downtime.
The request was received on a Saturday and
ValvTechnologies assembled a cross-functional team to
provide the plant with an immediate solution.
Representatives across the entire organisation, including
the shipping, warehouse and service departments, were
called to the Houston office to solve the problem. The
November 2016 60 HYDROCARBON
ENGINEERING
team was able to identify, assemble, test and ship a
replacement V1-1 valve by the end of the day that the
emergency request was received. The plant received the
V1-1 valve on the Monday morning and immediately
installed it. The new valve functioned well and the
company was able to bring the plant up, saving thousands
of dollars in potential downtime and revenue loss.
Case study: service and repair
ValvTechnologies has supplied almost 250 000 severe
service isolation valves, which are expected to last
between 20 and 40 years of almost continuous
operation. Just like any machine, the valves should be
inspected and serviced to maintain their performance
throughout their operating life. The company's
Aftermarket Service & Repair Department plays an
important support role, providing inspection and
product servicing for companies.
One of these companies is a large refinery in the
Texas Gulf area. The refinery has several hundred valves
installed – many having been specially engineered
designs with unique construction materials. A large
number of these valves have been in service for more
than 15 years. ValvTechnologies began discussions with
the refinery managers about how the company could
help refurbish these valves during a large multi-unit
plant outage early in the following year. For many
months the companies held onsite inspections of the
equipment and organised numerous follow up planning
meetings with the personnel that were determining the
outage schedule. From these meetings, the refinery
developed a detailed valve list that consisted of several
dozen older valves designated for service and repair.
With this list, ValvTechnologies designed an outage
support plan to receive the used valves and restore
them to 'like new' condition. This plan was a major
challenge as there was only one week to turnaround
each valve, leaving little time for delay or error.
The company managed almost all of the pre-outage
and in-shop planning and work flows. The project was
watched around the clock, seven days a week to ensure
success. Numerous aftermarket service and repair
personnel assisted in the preparation and execution of
this large project, alongside several other departments.
In particular, assembly and test personnel from the
company's shops worked 12 hour days to ensure the
valves were repaired on time. Inspectors visited daily to
check on the status of the valves in-process and confirm
that progress was being made. The end result was that
all valves were successfully serviced and repaired and
returned to the refinery ahead of schedule.
Conclusion
As a result of supplying the right metal seated ball valves
in the most difficult severe service applications, oil and
gas companies can take advantage of higher reliability,
increased safety and additional plant efficiencies.
Recommendations and technical expertise ensures
companies in the oil and gas industry that face tough
challenges are able to achieve peace of mind.
 Controlling fugitive emissions is one of the most important technical
challenges facing the oil and gas industry. Valves play a central role
in this, but, as Paul Shillito, Oliver Valves, UK, explains, there can
be a limit to the level of tightness operators should be aiming for.

E
arlier this year, the US government announced a set
of highly anticipated new regulations to govern the
emission of methane by the oil and gas industry.
The regulations currently focus primarily on
new build industrial equipment, but it is expected that the
Environmental Protection Agency (EPA) will move to
increase regulations on existing equipment in the near
future, which will likely mean large scale investment.
Fugitive emissions have always been a key issue for oil
and gas companies. These are the small amounts of
material – mostly methane, but also other short chain
hydrocarbons – which escape from the many seals that
separate the oil and gas in pipes and process equipment
from the atmosphere.
Although each individual leak may be tiny, multiplying
up by the thousands of potential escape paths that exist
along the route from extraction to the end user can add up
to significant lost revenue for the operator, as well as an
increased impact on the environment.
Nowhere is it more important than in the refinery
environment, where large numbers of personnel and a great
deal of infrastructure investment are in close proximity to
highly volatile process media – sometimes only a short
distance from residential areas.

HYDROCARBON 61 November 2016

ENGINEERING

Figure 1. A pipeline isolation valve from Oliver
Valves.
Figure 2. Twinsafe double block and bleed valve
with cut-away section to show the unit’s internal
construction.
While it remains to be seen exactly what form the
regulations will take at a technical level, it is important to
note that this is an area already governed by strict
standards that determine what level of emission is
permissible from each individual component. To qualify
for use, prototype valves are put through demanding test
programmes to measure the level of tightness they
deliver.
At the forefront of industry regulations is the
ISO15848 Standard. Originally released in 2006, it
classifies valves into three categories of tightness. The
standard was revised in 2015, and these tightness classes
have been changed to reflect helium or methane test
medias. Originally A, B and C, with class A valves having
the lowest leak rate, the 2015 edition of the standard
specifies AH, BH and CH leak rates when testing with
helium or AM, BM and CM leak rates when testing with
methane.
November 2016 62 HYDROCARBON
ENGINEERING
The quest for class AH
Achieving the ISO’s highest tightness standard is no mean
feat. To pass the test, a valve has to demonstrate that,
when placed in a vacuum and then opened and closed
hundreds of times at a wide range of temperatures, the
volume of gas that leaks out of the valve is very nearly
zero.
The rate of leakage is tested by enclosing the valve in a
vacuum chamber, passing pressurised helium through the
valve and using a mass spectrometer to take an extremely
accurate reading of how much of the helium has escaped
into the chamber.
The permissible level of emission is just
10-5 mg/sec./m of stem perimeter. To attempt an
illustration of this, at that rate of leakage, for a valve with
5 cm of stem seal to emit 1 g of helium, it would take over
60 years.
While this is clearly an extremely demanding test for
the valve being assessed, it is also a big challenge for the
test equipment itself because any air that enters the
evacuated chamber during the test will also register as
leakage through the valve.
The demands of class AH are so high that, unless
leakage of air into the chamber is entirely eliminated, it will
become almost impossible to achieve a low enough level
of detection to pass the test.
This highest rating is most appropriate where the
substance being handled is extremely toxic, and small leaks
over a long period might pose a health risk to those
working nearby.
Fit for purpose
Despite the specialist nature of the Oliver range of
class AH rated fugitive emissions valves, the intense
economic and political pressure on operators over
emissions has seen some begin to specify them for general
pipeline duties. Arguably this provides an unnecessary level
of caution and results in an avoidable increase in the
installation cost. The motivation behind this is easy to
understand – operators do not want to be seen to be using
anything but the best equipment.
In fact, to address this very concern, the standard itself
was revised in 2015 to increase the class AH leak rate
allowance from 10-6 to 10-5 mg/sec./m of stem perimeter
and reduce the number of mechanical operating cycles for
an isolation valve from 500 to 205.
This brings the standard closer to the fugitive emission
testing requirements of one of the major oil and gas
producers, which chose not to adopt the ISO system, as it
felt that the demands it made by the highest classification
were too great.
No one would argue against the importance of driving
up standards, and there is no question that there is a place
for a demanding standard such as ISO15848 class AH in
describing the level of attainment required for the very
tightest valves available.
Where there is a question, however, is over the way in
which the standards are being applied in the industry. For
example, leakage class BH is only 10-4, and whether
operators are prioritising the issues that will actually lead
TECHNICAL BULLETIN

CAT-AID FCC additive for high iron feeds

Many shale oil feeds contain high levels of metal Base catalyst without CAT-AID:
contaminants such as Nickel, Vanadium, Calcium, Iron,
Sodium and Potassium which can limit the refiner’s ability
to process these feeds and significantly impact unit
operation and the profitability of the Fluid Catalytic
Cracking Unit (FCC).

Iron poisoning, in particular, can have an adverse effect on

FCC performance, causing many challenges for refiners
through diminished conversion, increased slurry, coke, dry
gas selectivity and increased regenerator flue gas SOx
emissions.

When the iron content is high enough it reacts with the

silica from the base catalyst and essentially seals off the
catalyst interior by forming a shell-like layer at the catalyst
surface that inhibits hydrocarbon diffusion into and out of
the catalyst particle interior. Often refiners will try to
tackle iron poisoning with increased fresh catalyst
make-up rate or use of added equilibrium catalyst to Base catalyst with CAT-AID:
dilute the iron by flushing it out of the FCC unit.

Johnson Matthey’s INTERCATJMTM catalyst enhancement

additive, CAT-AIDTM, is an effective metals trap for
vanadium and other contaminants such as iron. CAT-AID
was originally designed to capture vanadium, a
permanent poison that accumulates on the catalyst
where it causes catalyst deactivation and promotes
undesirable dehydrogenation reactions, leading to
increased coke and gas make.

In recent commercial applications CAT-AID has been

found to be able to reverse the effects of iron poisoning of
the FCC catalyst. By breaking down the nodular iron-rich
shell on the surface of the catalyst, CAT-AID opens up
access to the inner core of the catalyst, allowing it to
become available for cracking once more.
Many refiners who process residue and shale crudes have
This significantly increases the profitability of the FCC turned to Johnson Matthey’s CAT-AID, as an effective way
operation by relieving operating constraint, improving to mitigate the effects of feed contaminants, and have
product yields, and reducing fresh and flushing realized substantial benefits resulting from improved unit
equilibrium catalyst consumption. operation.

Figure 3. Two large pipeline isolation ball valves, ready for installation
edit.
to a reduction in valuable and environmentally damaging
material escaping into the atmosphere.
Minimising leak paths
As well as tackling the tightness of seals around potential
leak paths, another important strategy is to look at how the
overall number of leak paths can be reduced.
Partly in response to this challenge, Oliver Twinsafe
patented the Twinsafe valve – a double block and bleed
system housed within a single forged steel unit – in 1995.
Originally developed for use in oil extraction operations,
these systems are now commonly used in refineries.
Incorporating the three valves into a single housing
increases the safety of the system by removing
connections between separate units, resulting in fewer
potential leak paths. The volume of the cavity between
the valves is also significantly reduced, allowing operators
to evacuate the space and establish a safe isolation more
quickly – a major benefit in emergency scenarios. The
reduction in volume of the material removed from the
valve also means less waste, reduced handling, lower
costs and easier disposal.
Another key advantage of the Twinsafe design is that
the whole system has the same face to face length as a
standard single isolate valve, as specified in the widely used will focus their efforts here, rather than on further
international standards API 6D and ANSI B16 10. Not only
does this mean the system can easily be installed into an
existing arrangement without any re-working of the
surrounding pipes, but also that the space required for
double block and bleed functionality is reduced by more
than half, freeing up space for other equipment.
In addition, because the valves are full bore, they offer
a negligible pressure difference when open, thereby
maximising efficiency.
These benefits make the ‘cartridge style’ double block
and bleed valve ideal for the refinery environment, and the
industry is beginning to realise the benefits.
November 2016 64 HYDROCARBON
ENGINEERING
Case study: Murco oil
refinery, Milford Haven
Murco was looking for 12 replacement
valves to control the flow of fuel to the
cogeneration facility at its Milford Haven
refinery in Pembrokeshire, Wales, UK. The
plant has a refining capacity of
6 million tpy, and refined products are
distributed to the Midlands and
Manchester.
The firm wanted a way to upgrade
the existing single ball valves to double
block and bleed systems with minimum
disruption to operations. Space was also
at a premium, as the existing layout had
been designed with standard length
single block valves in mind, so installing a
second row of single block valves was
not an option.
After consulting Oliver Twinsafe, the
firm ordered 12 6 in. cartridge style
double block and bleed valves that were
built to the same standard length as the
existing single block valves. This meant that no
modification of the existing pipe work was required, and
the new system could simply be installed in the same
position as the existing equipment.
The Twinsafe valves offered the most economical
overall installation because the extra work required to
install a non-standard length single unit system meant
significant additional cost.
Looking to the future
Cutting the overall volume of emissions from the supply
chain in order to avoid unnecessary loss of valuable
commodities and minimise the impact on the environment
should be a goal for all organisations.
In reality, the main culprits causing emissions from
pipelines are older valves – those that have been in-situ for
many years, and which were installed when standards were
much lower than the extremely high bar that units need to
pass today.
With this in mind, the best strategy for reducing
overall emissions is to identify older and poor performing
valves across the supply chain and upgrade them to units
that conform to today’s higher standards. Hopefully the
EPA and other enforcement agencies around the world
tightening the already very strict rules that govern new
build facilities.
In terms of the impact on total emissions, the
additional expense of specifying that all new valves must
meet class AH rather than the still excellent BH or CH
ratings would be far more effectively deployed in
addressing the emissions caused by ageing valves.
Ultimately, it is important for those specifying valves
for the oil and gas supply chain to think carefully about
their requirements and ensure they are not investing in a
level of protection that is not justified by the application in
question.
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November 2016 66 HYDROCARBON
ENGINEERING
 Matthew Martin and Bryan Beck,
Honeywell UOP's Callidus
Technologies Business, USA, discuss
how multipoint ground flares can
help downstream companies achieve
smokeless operations, and improve
burner cross-lighting and flame length.

P
ressure assisted multipoint ground flares (MPGF) have long been
used in the petrochemical industry, as well as gas plants and
refineries, for the safe disposal of vent gases during upset
conditions. A properly designed MPGF can achieve 100% smokeless
operation under all flow conditions for which it has been designed. This
type of flare has a low public profile compared to a typical elevated flare
because these systems may have no visible flame outside the plant.
Additionally, the higher destruction efficiency of an MPGF can significantly
reduce continuous plant emissions.
These flare systems are comprised of a radiation fence – also known as a
wind fence – a distribution manifold with fail-open valves, multiple smaller
manifolds (or runners), which terminate in flare burners, and a control
system that operates the staging valves based on the supply pressure.
Figure 1 shows the interior of an MPGF field. Surrounding the field is the
radiation fence. In the foreground, the elevated and shielded horizontal
pipes (just above grade) are the runners, and the burners are mounted on
the smaller vertical pipes.

Increased smokeless turndown capability

Pressure-assisted flare burners rely on high velocity vent gas jets for the
entrainment of combustion air to provide smokeless operation. The
minimum pressure, and therefore minimum port exit velocity, at which the
burner can operate without producing smoke from the flame, is a critical
design feature.
A lower smokeless operating pressure for a flare burner results in a wider
operating range for a given stage, therefore the number of stages required
for a properly functioning smokeless flare field can be reduced. There is an

HYDROCARBON 67 November 2016

ENGINEERING
 additional benefit of reduced heat load on the flare
components due to adequate vent gas and air mixing even
at low flows.
Figure 1. A typical multipoint ground flare viewed
from the inside of the radiation fence.
Figure 2. Probability of visible smoke during a
turndown (de-staging) event presented as a process
capability report. There is a 122.87 ppm chance of
visible smoke, given the data.
Figure 3. Probability of ignition within >1 sec. for a
group of multiple burners. The left panel shows the
previous generation of flare burners while the right
panel shows the Galaxy flare burner. A higher number
means shorter ignition time.
November 2016 68 HYDROCARBON
ENGINEERING
The de-staging pressure is the minimum operating
pressure of the flare system for which smokeless
performance should be expected. Figure 2 shows a
process capability chart for the Galaxy flare burner’s
smokeless performance as a fraction of a typical
staging pressure. The upper specification limit, or the
de-stage pressure, is designated on the right side of the
graph with a normalised value of 1. The maximum
operating pressure that produced smoke for any vent
gas tested was 42% of this de-staging pressure.
Accounting for the variability among the tested
vent gases, there is a 0.01% (122.87 ppm) chance of
visible smoke across vent gas types during a de-staging
event. The probability of visible smoke from the Galaxy
flare burner is less than the statistical analysis suggests,
given that the most common type of vent gas that
produces the most smoke is contained within the data
set at 42% of the de-stage pressure. Although visible
smoke could occur near the burner, it still may not rise
above the flare fence before dissipating. The Galaxy
burner produces essentially no visible smoke for any of
the vent gas compositions tested.
Improved burner cross-lighting
A typical multipoint flare stage may have between five
and 50 burners attached to a single pipe manifold.
When a stage is placed in service, a continuously
burning pilot ignites a flare burner. The flame then
propagates – or cross-lights – the row of burners
comprising a stage. If there is a delay in the lighting of
the burners, a higher volume of combustible vent gas
will accumulate near the burner heads before ignition
occurs, potentially resulting in an audible pressure
wave during the ignition event.
To reduce the ignition delay between flare burner
heads, cross-lighting ports can be used to direct ignited
vent gas to the adjacent flare burner head. For vent gas
with a large inert mixture component or low flame
speed, the size of the ports required for cross-lighting
may disturb the air ingress and mixing between the
flare burner heads under full load, which could cause
flames to rise above the radiation fence.
Additionally, a large portion of the heat may be
released directly adjacent to the burner heads,
reducing their life either through direct heating or coke
production from the heated vent gas inside the burner
heads.
Another common solution to decrease the time
delay in cross-lighting is to move the flare burner heads
closer together along the length of the vent gas
distribution manifold. For older burner designs, the
combined flame of multiple burners operating at high
capacity would often be visible above the flare fence.
However, the Galaxy multipoint flare burner was
designed from inception to operate as part of a large
flare system while maintaining short flame lengths.
Figure 3 shows test data with the probability of full
ignition of a group of burners within less than one
second of a highly inert vent gas flow arriving at the
first burner. The left panel represents the test data

Figure 4. A comparison of normalised flame length
data from the previous generation of burner to the
Galaxy. The Galaxy burner data was taken with 150%
flow rate compared to the previous generation, yet
maintains a 20% shorter flame.
Figure 5. Simulation results showing that the Galaxy
burner maintains flames below the flare fence under
conditions where older technology could not.
from the previous generation of flare burner while the
right panel represents the test data from the Galaxy
flare burner.
A two-sample t-test reveals that, with 95%
confidence, the null hypothesis that the cross-lighting
probabilities are the same can be rejected. The Galaxy
lights, on average, 17% more quickly and therefore more
smoothly between burner heads when compared to the
previous generation of burners.
Reduced single burner flame length
Multipoint flares use a radiation barrier, or ‘wind fence’,
to achieve safe near-field thermal radiation levels.
November 2016 70 HYDROCARBON
ENGINEERING
Direct exposure to radiation from the flames, at full
vent gas flow rates, would ignite most flammable
objects in the immediate vicinity. In most applications,
there should be no visible flame over the top of the
radiation fence under any circumstances in order to
minimise flare visibility, radiation and community
impact.
Figure 4 shows a comparison of single burner flame
lengths from the previous generation of flare burners
to a Galaxy burner with higher flow. The flame lengths
are presented on a normalised basis where 1 is equal to
the previous generation baseline flame length. The data
for the figure was obtained from physical performance
test observations. The Galaxy burner flame is, on
average, 20% shorter than the previous generation
burner, while flowing 1.5 times as much vent gas. The
flame height of the Galaxy can be further reduced as
required on a per-application basis, depending on the
vent gas composition.
Flare systems benefiting from the Galaxy flare
burner can use shorter radiation fences and fewer
burners. The height of the flame for an equivalent flow
rate has been greatly reduced compared to previous
generations of burner technology.
Reduced multiple burner flame length
One of the basic design tenets of a multipoint flare
field is a reduction in the flame length from the entire
vent gas flow. This produces a more manageable flame
size by exhausting the vent flow through many smaller
flames, as opposed to one large flame. Breaking a single
jet into multiple jets increases the mixing rate of the
vent gas with the surrounding air, resulting in smaller
jet dissipation length.
In the case of injection of multiple jets, it has been
established that the flow from the jets will merge. If
the flows from each individual burner merge before
combustion is complete, the zone where the flows
touch becomes starved for air and the flames become
longer. For this reason, the flames from multiple
burners will be longer than the flame from a single
burner.
The Galaxy flare burner has a unique
patent‑pending feature that alleviates elongated flames
in multiple burner installations. An asymmetrical gas
injection pattern ensures that, where the flames must
touch for smooth and efficient cross-lighting, ultimate
flame length does not become longer than that of a
single burner flame. This feature has been tested in
multiple burner physical testing, and then extensively
evaluated using computational fluid dynamics (CFD).
Figure 5 shows a side-by-side comparison of flame
length and shape, as predicted by CFD modelling for a
previous generation of flare burner and for the Galaxy
flare burner. In the left side view, the coalescing flames
in the multi-burner installation of the previous
generation of burners results in flame tips rising above
the top of the radiation fence. The right side view
shows that the flames from the Galaxy burners stay
contained within the fence under the same operating
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Figure 6. Safety factor plotted against the cast arm of
a Galaxy flare under development. The thermal stress,
fluid pressure and mechanical loads were combined in
the analysis to confirm the design.
Figure 7. The relative price of a Galaxy flare system
to the previous generation of technology. A 6 - 25%
reduction in cost is possible depending on the
selected options.
conditions. The simulated flames from the Galaxy
burner are predicted to be at 85% of the radiation
fence height.
Testing and conforming
The exit velocity from pressure assisted flares is too
high to meet US EPA design guidelines for flares
(40 CFR 63.18). To use pressure assisted flare technology
in the US, one must file for an Alternative Means of
Emissions Limitation (AMEL). The filing process includes
a provision that ‘each owner or operator applying for
permission shall be responsible for collecting and
verifying test data for an alternative means of emission
limitation to test data for the equipment, design and
operational requirements (40 CFR 61.244)’. Adherence
to local regulations and good work practices drive the
use of physical testing for other locales.
The Galaxy multipoint flare burner has been
pre-tested across a wide variety of common vent gas
compositions, including those that have high nitrogen
concentrations. The average destruction and removal
efficiency (DRE) across a range of vent gas
compositions, including those with high inert
components, was 99.87%.
November 2016 72 HYDROCARBON
ENGINEERING
Robust design
The Galaxy burner is made from cast high alloy steel
and is a single-piece design with no welds in the heat
affected zone. This design modification has been made
based on industry experience after the failure point of
many types of multipoint flare burners occured where
welds had been made to either attach arms to a spider
burner, or to affix a top-plate to an open casting.
Figure 6 shows the results of a fluid-structure
interaction study that was carried out to confirm the
burner’s robust design. The maximum thermal stress
induced falls well below the failure point of the
material, even under the continuous steady-state
operation of a single burner at maximum flow rate.
Maximising the results
An increased smokeless turndown capability, improved
burner cross-lighting, reduced specific flame length per
unit of vent gas flow, and high vent gas destruction
efficiency, afford many system-wide design
improvements.
The burner count for the flare system can be
reduced due to the increased smokeless turndown
capability, improved cross-lighting and shorter flame
length. A lower burner count results in a reduced spare
parts requirement, decreasing the initial capital
expenditure and the operating cost of the flare system.
A shorter specific flame length per unit of vent gas
flow can also use a shorter radiation fence. The Galaxy
burner flame length does not increase in multi-burner
installations to the same degree as previous generation
burners, allowing for a more reliable flame tip location
relative to the top of the flare fence. In addition to the
reduced material cost of a shorter fence, the reduced
weight results in reduced foundation requirements.
Figure 7 shows the potential reduced cost of using
the Galaxy flare system. In addition to a superior
technical solution, which was pre-tested against a
variety of vent gas compositions, the additive
improvements resulted in cost savings of 6 - 25%,
depending on the configuration selected.
Conclusion
By using advanced design tools such as CFD and FEA in
conjunction with full scale physical testing in the
Callidus test facility, the Galaxy multipoint flare burner
was created. This new generation of flare burner has
improved cross‑lighting capabilities, shorter flames in
both single and multiple burner applications, has been
pre‑tested in accordance with previous EPA AMEL
requirements, and has a robust design for use under
high flow conditions. These features combine to
provide a more valuable system design, which has
reduced noise during lighting events, fewer
components to purchase and maintain, a shorter flare
fence, and reduced foundation requirements. The
higher performance of this lower cost system is
demonstrated by extensive physical testing, advanced
simulation, and statistical analysis of the
results.
ACCURACY
IN
ADVERSITY
Matthew J. Olin and Scott A. Rouse,
Sierra Instruments, USA, explore
how advancements in natural gas
sampling innovations are increasing
flow metering accuracy for tough
applications.
I
t is a fact of the industry that oil and gas companies
are required, by various rules and regulations, to
routinely perform gas sampling to establish gas
composition, flow rates and gas properties. In order
to comply with regulations, gas sampling tools must
achieve high accuracy at low flows with varying gas
compositions, temperatures and pressures. For many
technologies, these requirements can be difficult to
meet.
This article reviews various gas sampling challenges
and describes how several recent innovations in thermal
mass flow sensor technology offer gas analyser
manufacturers, and oil and gas companies, new flow
metering options to solve the gas sampling challenges
that vex the industry.
HYDROCARBON 73 November 2016
ENGINEERING

Figure 1. Thermal dispersion mass flow.
Figure 2. Advanced four-sensor QuadraTherm thermal
sensor.
Natural gas sampling challenges
In order to comply with state and federal regulations,
oil and gas companies need to take an adequate gas
sample that is representative of the gas flow. This
requirement to take a ‘representative sample’ is
challenging for engineers. They must first carefully
consider where to take this ‘representative’ gas sample
from the source stream. The most accurate
representative samples cannot be taken from a ‘dead
leg’ or an area of heavy flow disturbance. In addition,
the sample’s chain of custody must be maintained in
order to avoid contact with other contaminants.
Engineers must also reduce and control the pressure to
the analytical tool, stabilise and control the flow, all
while protecting the analytical instrument from
particulates, moisture and pressure/flow excursions.
Engineers must take the gas sample in as real time
as possible, so that it correlates with actual process
flow. With these gas sampling application challenges,
the goal for oil and gas engineers is to take the most
accurate gas flow sample, as quickly as possible, and
with the lowest incurred cost.
November 2016 74 HYDROCARBON
ENGINEERING
When the optimal gas sampling location has been
determined, there are still other inherent flow
challenges to consider:
nn Wide flow rate variations: turndowns of up to
1000:1 may be required.
nn Changes in gas composition – wide gas density
variations: traditional flow meters cannot
successfully manage changes in gas composition
and still maintain accuracy.
nn Non-uniform flow profile: gas measurements
generally have asymmetric and swirling flow.
nn Very low pressure with variable temperature:
most lines operate near atmospheric conditions
with gas temperatures that vary with the gas
source.
A lack of solutions
There are various analytical tools on the market
today that attempt to meet all of the above gas
sampling and flow metering application
requirements. Gas chromatographs are still the most
common tool, while new micro-analyser systems are
gaining wide acceptance. A common thread in all
such analysers is that the gas sample flow must be
precisely measured and controlled, remain
independent of pressure and temperature variations,
and measure over a fairly wide range of flows at
various compositions. In reality, it is not possible to
have the flow rate unaffected by pressure and
temperature variations.
Common technologies, such as averaging pitot
tubes and insertion turbine meters, demonstrate poor
performance in gas sampling applications. These
devices measure volumetric flow, not mass flow,
where mass flow is the required measurement. They
also require a clean gas with constant gas
composition. Additionally, they often cannot measure
down to the low flows some gas samplers require. As a
result, these technologies do not effectively provide
the precise ‘representative sampling’ data required to
meet government regulations.
There is, however, a new technology innovation
based on the thermal dispersion principal that meets
these challenges. This technology will be examined
in detail below.
Thermal mass flow meter principle of
operation
As the name implies, thermal dispersion mass flow
meters use heat to measure flow and are the only
other direct mass flow meter in existence, along with
coriolis. Thermal technology has a major cost
advantage over coriolis, being on average one fifth of
the cost. Insertion probe thermal meters can be as
much as one tenth of the cost for larger pipes.
As thermal is direct mass flow, there is no need
for secondary measurements and flow computing to
calculate mass flow. With thermal technology, mass
flow rate is direct and unequivocal.
Thermal mass flow meters have no moving parts.
The velocity sensor is heated continuously via
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Figure 3. Wet sensor design.
Figure 4. Dry sensor design.
electrical energy, so that a predefined temperature
differential is always maintained between the two
sensors. For example, 50˚C (122˚F) is the constant
temperature differential for most thermal mass flow
meters (Figure 1). As soon as the fluid flow begins, heat
is drawn from the heated velocity sensor via the gas
molecules flowing past. The heat is dissipated as it is
carried off by the flow. As the gas molecule flows past
the sensor, it heats up and carries this heat away with it
downstream.
The corresponding cooling effect is measured and
compensated for instantaneously by the instruments’
sensor drive electronics, which instantly adds more
heating current to the sensor to maintain that constant
temperature differential of 50˚C (122˚F). Figure 1 shows
that the gas molecules themselves transfer the heat. In
a real world flow application, all of this happens in a
millisecond continuously and never stops. In essence, a
thermal mass flow meter is counting molecules that
flow past, heat up, then take the heat away with them
and carry it downstream – as a result, extremely
sensitive, accurate and repeatable molecular mass flow
measurement occurs.
Now that the basic measurement principal has been
described, how is total mass flow rate of gas flowing
November 2016 76 HYDROCARBON
ENGINEERING
through the pipe actually calculated? As described
by King’s law, the heating current required to maintain
the constant temperature differential between the
two sensors is proportional to the cooling effect
caused by the gas molecules flowing by, and,
therefore, is a direct measurement of total gas mass
flow rate in the pipe. It is important to note that
heat transfer from flowing gas is affected by the
properties of the gas.
These are known gas properties, such as:
n n Thermal conductivity.
n n Density and viscosity.
n n Heat capacity.
Innovation opens doors
Traditional thermal mass flow meters have limitations
in gas sampling applications because they cannot
accurately measure low flows with changing gas
composition without factory recalibration.
However, recent innovations in thermal mass flow
sensor technology have removed this barrier. Adding
two more temperature sensors has given rise to the
next generation four-sensor ‘quad’ thermal mass flow
meters and now combine robust construction with
extreme sensitivity – improving accuracy and
turndown (Figure 2).
Compared to previous generations of ‘two-sensor’
thermal mass flow meters, the maximum flow rate
has tripled with quad thermal flow meter technology.
Even more notable is the improvement in the
minimum detectable flow rate. An entirely new
‘ultra low flow’ market has opened up for industrial
thermal meters and now, for the first time, quad
thermal flow meters can manage changes in gas
composition through on board gas mixing software in
the field.
Accuracy specifications are comparable to
coriolis meters at a much more economical price.
Pioneered by Sierra Instruments, Inc., based in
Monterey, California, quad thermal (QuadraTherm®)
has a ±0.75% reading accuracy for insertion probe
versions (an improvement on the 2% of reading
previously possible with traditional thermal
technology). The in-line version of the instrument
improves on that with ±0.5% of reading accuracy.
These new advancements make quad thermal
technology ideal for gas sampling applications.
Dry thermal sensor technology: the
key to sensor stability
Many traditional thermal dispersion flow meters
have ‘wet’ sensors that have heat lost via stem
conduction that is not accounted for and can
introduce errors as high as 20%, depending on the
gradient between the gas temperature and the
temperature outside of the pipe. This is because of
the organic potting cement used in ‘wet’ sensors that
will shift and crack over time (Figure 3) causing
unwanted sensor drift, and resulting in a gradual
degradation of flow measurement accuracy.
 In a unique innovation, all Sierra ‘dry’ sensors
(DrySenseTM) use no organics and will not shift or
lose accuracy over the life of the meter. The dry
construction of the sensor provides much improved
sensor stability and accuracy (Figure 4).
Application challenges solved with
new technology
With recent advancements, coupled with the
inherent accuracy benefits of thermal mass flow
technology, QuadraTherm thermal meters coupled
with DrySense are now able to solve all the inherent
challenges in gas sampling applications. These
challenges are reviewed below.
Accuracy at low flow rates
In typical gas sampling applications natural gases of
various compositions are being sampled, the piping
is small, typically 0.5 in. - 0.25 in., and the flow
range is very low, ranging from 0 - 10 nlpm or lower.
Four-sensor thermal flow meters are capable of
measuring flow accurately down to 0.01 mps, which
equals approximately 0.1 nlpm in a 0.5 in. pipe.
Previous generations of mass flow meters bottom
out at 10 slpm. Due to this low flow sensitivity, the
QuadraTherm mass flow meter is able to be
calibrated with a full scale of 10 nlpm and a nominal
flow of 1 nlpm.
Metering accuracy in changing gas
compositions
Typically, the gas composition will vary with each
sample point, which makes taking an accurate
representative sample very challenging. With
traditional thermal flow meters, when gas
composition changes the meter must be sent back
to the factory for recalibration, costing engineers
valuable time and money in recalibration.
For the first time, QuadraTherm thermal flow
meters, along with powerful microprocessors, can
run flow measurement algorithms to compute the
mass flow rate of any gas composition. The
microprocessor takes the inputs from the four
sensors and solves the First Law of Thermodynamics
(heat energy in = heat energy out) for each data
point.
This technology now can enable a gas mixing
software app called qMixTM, a powerful, user
customisable gas mixing feature (Figure 5). qMix
provides gas flow measurement field flexibility by
allowing end users to create custom gases or gas
mixtures to compensate for gas compositional
changes.
It can be used when the gas composition
changes in the pipe or when moving the meter to
another location with a different gas composition.
The major benefit is that, for the first time, users
can experience the cost benefits of thermal flow
meters versus other technology such as coriolis and
still retain accuracy without returning the meter to
Figure 5. qMix Gas Composition Smart Interface
Program.
the factory for recalibration every time gas
composition changes.
Managing changes in varying pressure
In sampling applications, the pressure at the sample
source can vary from 0 - 3 barg. While variations of
3 barg will not have a major effect on higher flow rates,
pressure can greatly affect low flow rates and zero
flow, in particular. To compensate for these pressure
effects at low flow, the Raptor II OS Engine
dynamically accounts for increased natural convection
occurring as a result of pressure.
Meeting explosion proof requirement for gas
sampling
ATEX, cFMus and IECEx approvals are often required for
sampling devices and are a determining factor for this
application, which makes an industrial flow meter a
necessity. The four-sensor thermal flow meter is the
only ATEX approved thermal mass flow meter that can
measure flows this low (down to 0.01 mps).
Conclusion
While there are many alternatives to getting accurate
flow data in gas sampling applications, advanced
four-sensor thermal flow meters offer the most
accurate flow measurements for the toughest gas
sampling application requirements: high accuracy at
low flows, accuracy when pressures change, and the
ability to meet industrial explosion proof requirements.
For the first time with thermal technology, four-sensor
quad thermal flow meters, such as Sierra’s
QuadraTherm meter, can manage gas composition
changes in the field without losing accuracy. This is
why thermal technology is being readily adopted in
oil and gas applications, in order to quickly comply
with government gas sampling regulations, saving
hundreds of thousands of dollars a day in compliance
costs.
HYDROCARBON 77 November 2016
ENGINEERING
 Emmelyn Graham, NEL, part of the TÜV SÜD Group,
UK, explains how achieving the right chemical balance
in hydrocarbon pipelines can prevent flow assurance
issues, enabling more effective processing operations
in downstream facilities.

November 2016 78 HYDROCARBON

ENGINEERING
A
BALANCING
ACT
N
ot getting the chemical balance right in
upstream hydrocarbon pipelines has major
implications for the downstream oil and gas
sector. For this reason, vast resources are being
deployed upstream to mitigate the risk of flow
assurance issues occurring. Such problems not only
lead to substantial financial exposure for operators and
stakeholders, but can also pose serious environmental
and health and safety risks.
The shift to deepwater and subsea production,
which largely rely on the transportation of unprocessed
oil and gas streams over long distances, is creating even
greater flow assurance challenges that the industry
must overcome. One challenge in particular is the
excessive amount of water now being produced owing
to depleting oil and gas fields. All of these issues are
driving the need to have improved chemical dosing,
together with better techniques to identify not only
the best injection points, but also the optimum
quantity of chemical inhibitor required to avoid over
dosing or under dosing, of which both can have serious
implications.
Optimised chemical dosing is essential to ensure
effective flow assurance of oil and gas streams; flow
HYDROCARBON 79 November 2016
ENGINEERING

Figure 1. The chemical balance.
assurance is an umbrella term covering any issue
affecting the safe and economical transportation of oil
and gas from reservoirs to the refining stage. Flow
assurance includes many complex issues, such as
corrosion, erosion, vibration‑induced stress, liquid
slugging, emulsions and the formation of different
chemical deposits in pipelines including wax, hydrates,
asphaltenes, naphthenates, paraffins and scales.
Critical requirements
Reducing costly flow assurance issues has never been so
critical, owing to the decline in oil and gas prices,
together with the increased focus on the environment
and health and safety concerns. If potential flow
assurance issues are undetected early on at the
upstream stage and left unmitigated, these can lead to
pipeline blockages, catastrophic failures, loss of
containment and shutdown.
As the oil and gas industries access deeper waters
and more hostile environments, subsea pipelines are
even more susceptible to flow assurance issues. The
development of unconventional reserves such as shale
reservoirs, heavy oils, tight gas and oil, and coal bed
methane bring new flow assurance challenges. The
mitigation of flow assurance issues can be a
combination of mechanical and chemical solutions.
Mechanical methods tend to be expensive and
distributive to production whereas chemical solutions
can be used to prevent issues from occurring.
Chemical treatment programmes devised to mitigate
flow assurance issues may be developed, which may
result in continuous injection – common for upstream
production – or intermittent injection depending on
requirements and flow composition. For flow assurance
risks, such as hydrate control, high volumes of chemicals
(i.e. methanol or glycol) may need to be injected. For
example, methanol injection can be up to 40% by volume
November 2016 80 HYDROCARBON
ENGINEERING
of the liquid present; this then exacerbates other flow
assurance issues with multiphase flows such as slugging.
Some upstream processing facilities can recover
these chemicals for re-injection to reduce costs and
reduce issues for downstream processing and refineries.
Optimal chemical dosing will vary over the lifetime of a
well, and the choice of chemicals will change
depending on the process fluids and production rates
to ensure production optimisation, asset integrity and
low flow assurance risks.
Chemicals, which are injected upstream, can have an
impact on downstream processing facilities, including
effects on catalysts and refining processes. Therefore,
considerations should be given to the selection of
upstream chemicals injected and volumes injected.
There is no ‘one size fits all’ approach to the selection
of suitable chemicals or combinations of these, but
laboratory tests using sampled production fluids can
help optimise the chemical selection and reduce the
amounts of chemicals required for injection. Some of
the chemicals added can affect inline sensor
technology that is used to measure production flow
rates and identify flow assurance issues. This can make
it difficult to confidently rely on measurements to
control chemical injection rates.
For example, the under-injection of chemicals, for
scales or paraffin control, can result in reduced
production and profits due to uncontrolled buildup in
pipes, as well as restricted throughput and the potential
blockage of the pipe completely. If buildup occurs over
a prolonged period of time, production may be halted
to undertake a batch treatment process to remove the
coatings. Under-injection of corrosion inhibitors may
result in halted production to evaluate pipeline
integrity and replace affected components.
Under-injection may save on operational costs but
ultimately can result in reduced production, increased
maintenance costs and increased risks to assets. On the
other hand, over-injection of chemical additives
increases operational costs but can reduce production
downtime, enabling higher production and asset
protection. Over‑injection can also lead to issues with
the effectiveness of downstream processing.
Operators are keen to reduce operational costs and
increase production, but they must also balance the
economics for recovery in today’s challenging economic
environment. There are many organisations offering
solutions for the management of chemical injection
programmes to mitigate issues, but they are limited by
the lack of real time data to effectively optimise the
selection of chemicals and dosing.
Sampling challenges
The lack of real time data to determine effective
mitigation, and develop intelligent feedback for
controlled chemical injection, is recognised as a major
barrier to successful flow assurance strategies that
ensure safety, reduced production cost, increased
production and asset management. Instead, there is a
heavy reliance on irregular fluid sampling and/or
choose wisely.
At CRI, we provide catalyst and process solutions tailored for the petrochemical
and refining industry. Our technology is an integral part in helping achieve
success in a customer's application. Our strengths in R&D, catalyst manufacturing
and technical service allow CRI to progress quickly from lab scale to production
to customer results. We pride ourselves on developing lasting relationships
with our customers through collaboration and successful implementation
of catalytic solutions.

It is all part of our commitment to delivering innovation.

CRI Catalyst refers to certain of the companies of the Royal Dutch/Shell Group which are engaged
in the catalyst business. Each of the companies which make up the Royal Dutch/Shell Group of companies
is an independent entity and has its own identity.

cricatalyst.com
 historical data, despite the acknowledgement that
flow conditions can change very quickly. To reduce
costs, new field developments have eliminated the
infrastructure to take fluid samples, which has
increased the risks associated with flow assurance and
reduced the margins for error. Hence, there is a
reliance on over-injecting chemicals to eliminate
issues.
Currently, fluid composition is determined for
assessing and developing chemical treatment
programmes by taking samples of the production fluid.
If samples are taken on an oil platform, then the
sample will be at different conditions compared to
subsea pipelines. This adds additional measurement
uncertainty from the laboratory analysis of the sample
and subsequent extrapolation to subsea conditions.
Another disadvantage to sampling is that some
components can already be deposited in subsea
pipelines and, hence, not detected in downstream or
topside samples, which is a major flow assurance risk.
Taking a multiphase or wet gas sample from a
pipeline is a complex engineering challenge. The
distribution of the fluids can change, making the
collection of a representative sample difficult as a
sufficient amount of each phase must be collected for
analysis in a laboratory to determine the composition.
Sampling and analysis is also expensive, which severely
limits the frequency of sampling. Despite the cost and
engineering challenges, sampling is regarded as critical
to effective flow assurance management.
The fluid samples may need to be conditioned for
up to five days to ensure the mixing and partitioning
of phases before beginning analysis. It can take several
weeks from the collection of a sample to the
provision of usable data for operators to allow
decisions on flow assurance and chemical injections to
be made. Within that period, flow conditions are likely
to have changed.
Sensor technology
There have been some pilot investigations by research
organisations into the development of new sensor
technology and models that can be used successfully
to indicate when flow assurance issues may occur in
real time and determine accurate chemical dosing.
Research has shown that in one field alone, for the
most part, there was no need to inject any hydrate
inhibitor chemicals as the flow conditions and fluid
composition were outside the hydrate formation
envelope. This saved substantial operating costs as,
previously, inhibitors were continuously injected based
on the worst case operating scenario.
One estimate suggests that with improved
chemical management, a potential reduction in a
hydrate inhibitor (MEG) alone could save around
£1 million/y for just a typical single gas well. The
average cost of chemical injection to mitigate flow
assurance issues can be as high as €2/bbl of produced
oil. With the current low oil price of €40/bbl, the cost
of chemical injection can be 5% of production costs.
November 2016 82 HYDROCARBON
ENGINEERING
A step change
The industry has identified several ground breaking
challenges that would require innovative
instrumentation to develop sensors and sampling to
collect real time data, combined with a more
advanced, fundamental understanding of physical
chemistry. This should enable a step change, in both
the optimisation of chemical injection programmes to
mitigate flow assurance risks and when balancing
economics for production and processing. These
challenges include the development of robust in-situ,
real time flow sampling techniques and hydrocarbon
composition determination, along with the
development of new sensors/techniques, which are
able to detect and measure dosing chemicals.
The fluid sampling techniques should not rely on
the removal of samples for remote analysis offline,
and will need to be accurate and repeatable for all
flow compositions, velocities and flow patterns.
Methods will also need to be established to provide a
real time breakdown of the hydrocarbon composition
of multiphase flows. This is in order to establish the
optimal chemical dosing requirements and to
determine the amount of water present.
Sensors will need to be developed and evaluated,
while techniques using correlations linked to other
sensor measurements could be developed to detect
and measure the quantities of residual-dosing
chemicals in different parts of a pipeline. Flow
assurance models could potentially be optimised,
based on the real time data from in-line sensors in
long subsea pipelines and risers, and in other remote
inaccessible locations.
If new sensors were developed that can determine
the hydrocarbon composition and concentration of
added inhibitor chemical species in real time, this
would offer a step change in flow assurance
management and substantially reduce measurement
and modelling errors – currently, there are little or no
sensors available to operate in these environments.
Information on the flow conditions, such as
temperature, pressure, hydrocarbon composition and
water content, can be used to establish ‘safe’ operating
envelopes. Within these ‘safe’ envelopes, no chemicals
will be required. The same strategy applies to inhibitor
chemicals for wax and scaling. This would launch a
new era in cost effective flow assurance management
strategies.
Conclusion
Flow assurance intervention costs could be
substantially reduced by the availability of real time
data that will make it possible to rapidly identify and
mitigate issues, including equipment failures and
production shutdowns, and to reduce the cost and
volume of chemicals required. This means that the
flow of oil and gas to downstream processing and
refining facilities will be more efficient and
predictable, as many of the flow assurance issues
encountered upstream will be resolved.
 Joāo Amorim, Fernando Borges and Sérgio Moutinho, Galp Energia, Portugal,
and Lutz Kunze, Lothar Karrer and Bjorn Welander, BASF – Catalyst Division,
Germany, describe how Galp Energia improved aromatic purification efficiency
through the use of high performance activated bentonite.

PURE
AND
S
SIMPLE
everal industrial processes require aromatic
compounds, such as benzene, toluene, xylene
and cumene, or aliphatic compounds, such as
hexane, cyclohexane or heptane with low levels
of olefins, as raw materials. A very common process for
acid sites deactivate during operation by poisoning,
which occurs when a reaction partner stays attached to
the acid site or does not donate back the hydrogen
atom utilised in alkylation. High boiling compounds
with a large carbon number can block active sites and
the removal of olefins is Friedels Crafts alkylation using act as poisons. The alkylation is performed in fixed bed
an aromatic or aliphatic molecule catalysed by an operations at elevated temperatures in the range of
acidic mineral catalyst to form alkylates, which can be 150 - 210˚C, and in a liquid phase. Mineral catalyst is
removed downstream through distillation in high granular, with typical particle diameters in the
boilers. The alkylates do not contain the olefin double millimetre range.
bonds. Alkylation is an ongoing catalytic reaction on Galp Energia faced the challenge of finding a long
acid sites, only terminated by catalyst poisons. The lasting high capacity mineral catalyst, in order to

HYDROCARBON 83 November 2016

ENGINEERING

Figure 1. Mechanism of aromatic purification by
olefin removal.
Figure 2. Acid activation of mineral catalyst.
Figure 3. Scheme interpretation of the process flow
from the solvents production (hexane and heptane).
improve run length and minimise catalyst changeouts
for aromatic purification. BASF developed a higher
activity activated bentonite called F-24X, which
increases the lifetime compared to conventional
adsorbents by about 40 - 50% for a given vessel
November 2016 84 HYDROCARBON
ENGINEERING
volume. BASF uses a special clay, activated to a
higher degree than the prior product, F-24. F-24
has been considered an industry standard in the
past, used in many units globally. The new BASF
clay, the basis for F-24X, is a calcium bentonite
with reduced swelling tendencies, as compared to
a sodium bentonite. A low water content of about
2% is advantageous, as more active mineral catalyst
is present and it also enables a faster startup time.
Olefin content in organic compounds is
advantageous for many petrochemical uses, so a
maximum olefin content is needed, which is
measured by titration with bromine and
characterised by a bromine index (BI; BI = 1 stands
for 1 mg Br2 needed for the titration of 100 g of
organic compound). Typical maximum
specifications for a bromine index for organic
compounds containing olefins for various
processes are between 10 and 50.
New mineral catalysts for aromatic
purification
The new mineral catalyst consists of a specially
activated natural montmorillonite, activated in a
multi-stage process using sulfuric acid. BASF has
developed a new high acidity granular catalyst
version called F-24X, which has an activity level
that is 40 - 50% higher than conventional catalysts.
Galp, after careful consideration with respect
to expected performance, ease of construction
and operation, and after a feasibility study,
decided to install the F-24X mineral catalyst, in
order to achieve a longer unit lifetime. The basic
design parameters for the unit were provided by
BASF, based on Galp’s process data.
The system was successfully sock loaded by
Galp, based on prior experience. After successful
commissioning, the F-24X mineral catalyst was
started up, and the parameters of the purification
were carefully monitored.
Case study
In this case study, the evaluation of the
performance of the new F-24X clay has been
compared with the standard F-24 system.
Alternatives
The application of other removal technologies,
such as selective hydrogenation of olefins, results
in hydrogen usage, and the need for a trickle phase
reactor system. Catalytic removal of olefins using
Friedels Crafts alkylation on a mineral catalyst
(activated clay) is a method that results in
significant advantages, particularly if the alkylated
compounds can be removed using downstream
distillation. It is important to achieve a long
lifetime, as every changeout of the catalyst is
costly. Figure 1 shows a scheme of Friedels Crafts
alkylation of the olefin cyclohexene, with toluene
forming the high boiling alkylates.
Acid activation of mineral catalyst
Mineral catalyst is manufactured through acid
activation of clay, which comes from a very special

SUBMERGED MOTOR
deposit. BASF uses Aberdeen clay, which is known for
its high quality. It is activated by sulfuric acid, and

CRYOGENIC PUMPS
converted using a multi‑stage process into the
granular mineral catalyst F-24X.

FOR LIQUEFIED GASES

Figure 2 shows the chemistry of activation, where
an acidic hydrogen ion from the sulfuric acid opens
the layer structure and forms acid sites.

Chemical and physical properties

The properties of F-24X are:
nn Moisture (free at 105˚C, wt% loss). 2
nn Residual acidity (mg KOH/g at phenolphthalein
endpoint). 14
nn Bulk density lb/ft3 (g/cc). 55 (0.88)
nn Surface area (BET method), m2/g. 400
nn Particle size passing 8 mesh, 97.5 wt%.

GLOBAL LEADER IN DEVELOPMENT,

nn Passing 60 mesh, 5 wt% (Tyler standard sieve).

A large advantage is the residual acidity of 14 mg

ENGINEERING AND TESTING

KOH/g at the phenolphthalein endpoint, which is
responsible for the superior activity of the catalyst.

Key aspects of project development

Galp was undertaking a revamp of its alkane unit for
olefin removal using BASF’s F-24X catalyst. The feed
conditions were as follows:
n n Flow: hexane and heptane.
n n Design flow rate: 90 - 180 tpd.
n n Phase: liquid.
n n Operating temperature: 130 - 160˚C.
n n Operating pressure: 8 bara.

The feed composition consisted of:

n n Impurity: bromine index.
n n Inlet specification olefins: 7000.
n n Required outlet: <1000.
Superior Reliability
Operating description
Two treaters (R-0251A/B) are used for the saturation of
refined olefins (production of hexane and heptane Full Range of Cryogenic Pumps
with bromine number ≤1 GBR/100 g) and the
benzene/toluene stream, with a view to meet the • In tank, removable pumps
specification with regard to acid wash colour
• Vessel-mounted pumps
parameters (≤1 for benzene and ≤2 for toluene). Thus,
there are two different services (U-0500 and U-0200), • Fixed mounted pumps
typically with one bed dedicated to each one.
As far as the severity of the adsorption is Low total cost of ownership
concerned, it is proportional to the temperature at the
inlet of the bed. Accordingly, throughout the cycle,
the clay loses capacity, and the temperature has been
No shaft seals - maximize safety,
increased in order to maintain the same degree of with low maintenance costs
alkylation after some deactivation. Nevertheless, in
the treatment of hexane, the temperature at the inlet
Unparalleled quality
of the bed may not exceed 160˚C, to avoid
vapourisation of the feed. A further temperature
increase can result in an approximately 20% higher Exceptional pump-down capability
capacity of the catalyst. The end of the cycle is (Extremely low NPSHR)

WWW.NIKKISOCRYO.COM

Figure 4. Saturation capacity of olefins by F-24 and
F-24X clays.
Figure 5. Energy consumption by the F-24 and F-24X
clays.
reached when the target BI number cannot be
reached anymore (in the case of the BT stream, the
signs of saturation are visible when the colour or
higher BI number shows up in the toluene).
Regarding the annual consumption of clay, on
average five loads are made for the production of
solvents and two loads for the treatment of a
benzene/toluene stream (approximately 30 t each).
The clay system (R-0251A/B) is given priority
over the raffinate for the U-0200 in order to avoid
unit shutdown. Thus, when saturation occured in
the bed operating with the BT stream of the
U-0200, BASF proceeded with the replacement of
the U-0500 bed (by interrupting the production of
solvents, if needed) in order to redirect the BT
stream to a new clay. Following this procedure, the
saturated bed was replaced, meaning that it was
ready from that moment to start solvent production
(U-0500). This implies the early replacement of a
few beds that operate with the raffinate stream
(solvents production), which is due to the absence
of a spare bed. Normally this is carried out in order
to manage the cycles so that the saturation of the
beds coincides, or is very close, thus minimising
waste. Accordingly, the amount of clay loaded in
the BT stream beds is reduced.
Production of solvents (hexane and
heptane)
Figure 3 shows an interpretative scheme of the
process flow associated with the solvent
production (hexane and heptane).

Chemical reactions and poisons

Figure 6. Treatment costs associated with the use of
BASF F-24 and BASF F-24X.
Figure 7. Production cost index per clay cost (€/m3
raffinate treated).
In the acidic centres of the clay, oligomerisation and
alkylation can occur (olefins + aromatic compound
--> alkylate; olefin + olefin --> oligomer). However,
the formation of large alkyl aromatic compounds
can cause clogging in the pores of the clay – this
being the phenomenon responsible for much of the
deactivation that occurs over the production cycle.
Additionally there may be other poisons that
contribute to a reduction of the activity of the
clays, such as N-methyl-2-pyrrolidone (NMP),
monoethylene gylcol (MEG) and H2O.
NMP is considered a very significant poison,
dramatically reducing the lifetime of the clay.
However, the poison can be partially desorbed using
a temperature rise in the bed. In this case, the
temperature raffinate operation was limited to
about 160˚C (due to the occurrence of
vapourisation), and a washout of the bed with hot
nitrogen has been carried out in the past without
success (use of the E-0253 for nitrogen heating). The
MEG, although considered a poison, has a much
smaller impact than the NMP, and usually it is not a
cause for concern. Finally, H2O is considered to be
the most critical poison as its capillary
condensation can irreversibly change the structure
of the clay (clay dissolution). However, this

November 2016 86 HYDROCARBON

ENGINEERING
29 November
- 1 December
2016
 phenomenon is caused by free water and not dissolved
water. Therefore, the content of H2O should only be a
concern when it reaches half of the value of the
concentration corresponding to the solubility of H2O
in the stream to be treated.
Typically, levels of H2O at ≤500 ppm-wt do not
cause this type of issue (far from the values normally
found in the raffinate stream).
Clays
Essentially, F-24X is an evolution of F-24. F-24X has a
higher density than the F-24, which allows the loading
of an additional quantity of clay (about 25 wt%, when
compared with the F-24) for the same available
volume. Additionally, F-24X is claimed to have a higher
catalytic activity compared with F-24 (about 10%).
In December 2014, the loading of F-24X was carried
out for the first time with a mixed bed (11 t F-24 + 19 t
F-24X). Currently, four cycles supplemented with F-24X
for the production of solvents have been completed.
Comparative assessment of the clays
The following section provides a comparative
evaluation of F-24 and F-24X, with respect to three
factors: olefin saturation capacity (expressed in
Kg Br/kg clay); energy consumption (in kg of VIP/m3
raffinate); and treatment costs (€/m3 raffinate).
It is also worth noting that, for comparison
purposes, all production runs of hexane were selected
from January 2013. For statistical purposes, Run 4, in
2013, was omitted (due to suspicions that the clay was
contaminated with C9s, causing a very significant
reduction of the clay lifetime), as well as Run 1 from
2015 (it was necessary to significantly anticipate the
final portion of the cycle due to the saturation of the
clay, associated with the treatment of the BT cut).
Thus, for the F-24, a total of four runs were considered
and, for the F-24X, a total of three runs were
considered, including the run with mixed bed
(11 t F-24 + 19 t F-24X).
Saturation capacity of olefins
Figure 4 shows the saturation capacity of the olefins by
F-24 and F-24-X (expressed in kg Br/kg clay). From
observing the figure, it can be seen that, on average,
F-24X has a greater olefin saturation capacity
compared with that of F-24 (about 5 kg Br/kg clay).
This difference represents an increase in capacity in
the order of 40% (higher than the 10% claimed by BASF
as a minimum improvement).
However, it is important to note that there are
particularities in the production process. The cycle
time of the clays are significantly affected by several
factors, namely:
n n Simultaneous production of hexane and heptane
(operation with higher severity to meet the
heptane specification).
n n Interruption of the run of solvents due to C9s
production (may cause C9s contamination on the
subsequent startup of the clays in service).
November 2016 88 HYDROCARBON
ENGINEERING
n n The maximum capacity of the clay may not be used
because it reached the final stage of the cycle in
the other bed (in operation with the BT cut),
making it necessary to anticipate the replacement
of the bed.
As it is very difficult to estimate and quantify the
impact of each of these factors on each run, it is
assumed that the statistically treated data may be
affected with a significant percentage of error;
therefore, the quantified benefits (about 5 kg Br/kg
clay) may not accurately reflect the reality.
Energy consumption
Figure 5 shows energy consumption data
(kg steam/t raffinate) for F-24 and F-24X. In the figure
it appears that, on average, the energy consumption
associated with the F-24X is lower than the energy
consumption associated with the F-24 (approximately
11 kg steam/t raffinate). This difference means a
decrease in steam consumption by approximately 8%
wt. This fact is a consequence of the lower saturation
rate of the F-24X, which implies less pronounced
temperature rises over the run.
Treatment costs
Figure 6 shows the cost of treatment (€/raffinate t)
associated with the use of F-24 and F-24X. In the
treatment cost, only the cost of clay (purchase cost +
hand labour for bed replacement) has been considered,
as energy costs are much less significant and the price
of steam has undergone considerable fluctuations
(indexed to the price of fuel gas/natural gas), which
could distort some economic gains.
Looking at Figure 7, it appears that, on average,
treatment costs associated with the use of F-24X clay
are lower than the treatment costs associated with the
use of F-24, and this difference is reflected in
approximately €5/t of refined product. This difference
is due to the higher olefin saturation capacity of F-24X.
Conclusion
F-24X has a greater capacity for the saturation of
olefins than F-24, and this difference is translated into
approximately 5 kg Br/kg clay, which then translates to
a capacity increase of around 40%.
The energy consumption associated with the use of
F-24X is lower than the energy consumption associated
with the use of F-24, and this difference is reflected in
about 11 kg steam/t raffinate, which leads to a lower
steam consumption of about 8 wt%.
The treatment costs provided by the use of F-24X
are lower than the costs of those provided by the use
of F-24. This difference is quantified at around
€5/refined t.
As the aromatic and cycloaliphatic feed streams in
refineries differ, the benefits of the new mineral
catalyst may vary from unit to unit. Nevertheless, due
to good experience in laboratory tests and in several
large units, significant improvements in unit lifetime
and treatment costs can be expected.
 Pat Salemo, Philadelphia Energy Solutions Refining and Marketing, LLC,
USA, and Doc Kirchgessner and John Aikman, Grace Catalyst Technologies,
USA, explain how Philadelphia Energy Solutions tackled the negative impacts
of iron contamination in its fluid catalytic cracking system.

T
he first section of this article, which appeared
in the September 2016 issue of
Hydrocarbon Engineering, discussed the impact of
iron contamination on fluid catalytic cracking unit
(FCCU) operations, introducing two of Philadelphia Energy
Solutions' (PES) FCCUs that had experienced iron poisoning:
868 (Point Breeze) and 1232 (Girard Point). This section will
discuss all of the methods that PES used to overcome the
effects of iron poisoning at both units. These methods are
a combination of preventative, routine monitoring, and
actions to help lessen the detrimental effects. The article
will discuss routine feed and Ecat testing, optimum catalyst
selection, and iron reduction methods.
Methods for combating iron
contamination
Feed testing
There are two common ASTM methods for determining
iron content in hydrocarbon streams. ASTM D5708 utilises
inductively coupled plasma (ICP) while ASTM D5863 utilises
flame atomic absorption spectrometry. Both methods give

HYDROCARBON 89 November 2016

ENGINEERING

Figure 1. 1232 feed iron testing by ICP. Acid digestion
(B) versus solvent digestion (A).
Table 1. Ecat fluidisation monitoring
Symptoms Monitoring
– Low slide valve DPs – Slide valves dPs
– Reduced feed rate – Slide valves % opening
and/or riser temperature due – Pressure survey
to alarms – Fluidisation points
– Grace Ecat UMB/UMF, PSD
Action level Corrective actions
– Unable to achieve target – Adjust PSD of fresh catalyst
feed rate – Add fines to fresh catalyst
– Unstable catalyst circulation – Review PCAT options
two possible methods for preparation.1, 2 Since D5708 is
utilised at PES, discussions below will focus on this
procedure. Method A of D5708 prepares the sample by
dissolving in an organic solvent while Method B uses
hydrofluoric acid. It is important to perform a proper
safety hazard analysis before changing from a solvent to
acid digestion method, as working with acid in the
laboratory requires different safety processes.
Grace has conducted significant research in the area of
feed analysis, and has found that preparing the sample with
acid digestion will yield more accurate results. The acid
digestion method (B) will measure the total metal content,
whereas the solvent digestion method (A) will not detect
metals present in insoluble particulates. This was evident
with calcium in the past in FCC feed at PES, and has now
been noted with iron. The balances around iron on the
FCC Ecat stopped closing in April 2014 when PES began
processing a significant amount of shale oil crude. At this
time, PES tested samples via the acid digestion method to
better understand the total iron and calcium levels being
charged to the FCC units. As seen in Figure 1, the iron levels
measured by the acid digestion method averaged 30% higher
than those measured by the solvent digestion method, with
occasional differences greater than 50%.
Not only is routine and accurate feed analyses essential
for an accurate FCCU iron balance, it is also critical for
maintaining healthy levels of contaminant metals, especially
iron on FCC Ecat. A proactive response to unexpected spikes
in feed iron can allow the refinery to continue to operate at
planned rates economically. In addition, this data can be
used to work with crude purchasing groups to select the
optimum crude(s) for the refinery by minimising difficult
contaminant metals such as iron.
November 2016 90 HYDROCARBON
ENGINEERING
Ecat monitoring
Grace and PES collaborated to develop an extensive
monitoring matrix based around Ecat analyses and key FCC
unit performance variables. This programme focused on
symptoms or indicators, along with variables used to
monitor changes with action triggers and appropriate
responses.
Based upon concerns expressed by the refinery, the key
variables monitored most closely were:
nn Metals levels, specifically iron and calcium.
nn Ecat activity range, both high and low.
nn Unit response to catalyst physical properties (losses
and fluidisation).
nn Yield selectivities.
Predetermined variables for each area were monitored
via a gamut of catalyst and unit operational indicators. As an
example, the fluidisation response chart is shown in Table 1.
Similar response charts were prepared for each of the above
focal points.
To support the unit operating health monitoring, a
standard and routine sampling procedure was established to
provide key information. Most of this sampling was routine
to FCC audit and control, for example, regular and frequent
Ecat and feed sampling. These routine methods were used to
calculate the FCC unit iron balance. Iron on Ecat, purchased
Ecat (PCAT) and feed were all tracked. Building a database
from these analyses helped to establish the added iron
threshold for the PES FCC units. Calcium balances were built
using the same analyses. Shifts in catalyst ABD were also
successfully used to detect early stages of iron poisoning.
Matching PCAT to the unit objectives and constraints
was also important for successful FCC unit operations. Using
the Grace equilibrium catalyst database, inconsistencies in
properties between PCAT and the base catalyst were
identified particularly in bottoms cracking and gasoline/LPG
selectivity. PCAT purchases were adjusted to select materials
more compatible with the catalyst and objectives, as shown
in Figure 2.
The non-standard Ecat testing, however, was very
significant in terms of unit support. In particular, Ecat was
regularly tested for diffusivity limitations. Using the IGC
methods cited in part one of this series,3 Grace and PES were
able to quickly distinguish between true iron contamination
problems and other causes of unit changes unrelated to iron
in feed and on Ecat. This helped direct, and more precisely
focus, activities and response to unit operations and yields.
Another non-standard method employed was scanning
electron microscopy (SEM). SEM is an excellent qualitative
method for detecting iron nodules. Furthermore, Grace used
the electron probe microanalysis (EPMA) method to map
concentrations of contaminant metals on the surface of the
catalyst.
During the initial stages of the operation with MIDAS®
Gold FCC catalyst, ACE testing was conducted to
differentiate between feed, operations and catalyst effects in
the 1232 unit. Calcium and iron in feed were related to
different crude types and the inputs of various crude sources
were continuously monitored in order to isolate and identify
changes arising from these factors. As discussed, numerous
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Figure 2. PES Ecat and PCAT properties versus time.
Figure 3. Iron removal versus acetic acid rate (CRA)
from March - September 2014 at the GP crude unit.
Figure 4. Iron in the FCC feed at PES before and after
solids removal agent.
routine and non-routine analytical methods were put in
place to monitor the Ecat for iron contamination.
Feed treatment
Reducing iron to the FCC by all means possible can prove to
be a very cost effective step. Managing corrosion in the
refinery is not only a good safety practice, but it can also
limit the iron to the FCC. Desalting alone can help remove
some iron, however desalting will not remove organic iron.
Desalter acidification has also been documented to enhance
oil/water separation leading to lower salt, sediment and
water in the desalted crude, as well as help with the removal
November 2016 92 HYDROCARBON
ENGINEERING
of some metal contaminants in the crude.4 Desalter
acidification has been applied to the PES Girard Point (GP)
crude unit. This was done mainly to remove calcium from a
high calcium opportunity crude oil in order to protect the
catalyst activity at the FCC units; however, a secondary
benefit has been the removal of iron from the crude oil, as
seen in Figure 3.
As mentioned above, the shale oils tend to have solids
that contain high amounts of calcium and iron. Therefore, it
is desirable to knock these solids out if possible before the
FCC. Solids wetting agents (or removal agents) can help drop
solids including colloidal particles of iron and calcium into
the water phase helping to remove these particulates. This
additive can also improve desalter operation by reducing
solids and emulsions build up inside the desalter leading to
increased desalter residence times. A solids removal agent
was introduced into the Girard Point crude unit in
September 2014 with the intent to reduce iron in the FCC
feed. Results of the solids removal agent coincided with a
drop in iron results, as seen in Figure 4.
In addition, the solids removal agent also showed a slight
drop in calcium to both catalytic cracking units. Removing
calcium from the FCC feedstock, as well as sodium, will help
reduce the degree of iron poisoning, since these metals work
together to limit diffusion. PES does not have a catalytic
feed hydrotreater available to remove contaminants;
therefore, proper desalting is essential.
Catalyst flushing
Another method for combating iron contamination is to
simply flush it out of the circulating inventory at a faster
rate than it is being deposited on the catalyst from the
feed. It is fairly common in resid units to implement a
catalyst flushing programme to control contaminant metals
such as Ni, V, Na and Ca. The catalyst flushing programme
can be expanded to include iron. This can be accomplished
with increased fresh catalyst additions, PCAT additions, or a
combination of both. Studies have shown that iron present
in the base clay from the catalyst manufacturing process
does not contribute to surface plugging. Optimum fresh
catalyst formulation is critical in higher iron services, and
will be discussed in detail in the next section. However, it is
as important to select a good quality purchased Ecat that
has low added iron content. It is recommended to sample
each PCAT delivery in order to monitor the quality of the
material. This will also help with closing the ‘added’ iron
balance for the unit. Also, when using a significant amount
of PCAT (>25%), one should consider other properties such
as zeolite and matrix surface areas. PCAT can affect product
selectivities and operating variables such as fresh catalyst,
but to a lesser extent.
The use of incremental fresh catalyst additions is more
effective because it does not contain added iron, as shown
in Table 2. In addition, the incremental activity is often
valuable during an iron excursion. However, flushing with
fresh catalyst alone can lead to elevated activity, which can
cause other operating limitations such as high regenerator
dense bed temperature. For larger resid units, the optimum
plan could be a mix of both fresh and PCAT. PCAT has a
secondary benefit of lower Opex.
 In the case of the Girard Point 1232 iron excursion account the need to resist the deleterious effects of
mentioned above, a combination of increased fresh nickel (Ni) and vanadium (V), as well as iron and calcium
catalyst and good quality PCAT additions was used to in the feed.
combat the negative effects of iron poisoning. To In combination with the selective bottoms cracking
overcome equipment limitations, PES worked with Grace matrix component present in MIDAS® Gold, additional
to increase the capacity of its catalyst loading system. It is components were included in the formulation to
important to work closely with the fresh catalyst and selectively react with Ni to form a nickel aluminate, which
PCAT suppliers to develop the best flushing plan for each is drawn away from the catalyst active surface and retards
respective unit. Several factors such as catalyst dehydrogenation reactions caused by Ni on equilibrium
selectivities, catalyst activity and unit limitations should catalyst. These reactions are primarily related to
be considered to ensure a successful recovery while formation of hydrogen and coke.
maximising product yields. The zeolite chosen for use in the PES 1232 unit
application has an appropriate degree of rare earth
Catalyst selection stabilisation to protect the zeolite against attack by
Multiple unit objectives and
constraints had to be considered
when Grace chose the optimum
catalyst for the 1232 unit. Chief
among these was metals tolerance.
As noted throughout, overcoming PLANT & REFINERY
the effects of contaminant iron
and calcium were key factors. As DISMANTLING
high levels of resid were
commonly processed, coke-
AND DEMOLITION
selective bottoms cracking was
essential. Moreover, catalyst
fluidisation was critical for this
older FCC unit with long
standpipes.

Pore size distribution

considerations
The importance of pore size in FCC
catalysts to selectively crack resid
fractions while avoiding diffusion
limitations is well known.5
Catalysts that have a high level of
mesoporosity, in the 100 - 600 Å
BETTER TOP SURPLUS
range as measured by mercury (Hg) SCRAP RANKED EQUIPMENT
porosimetry, are able to selectively PRICES SAFETY SALES
crack heavy hydrocarbons that
might ordinarily be coke
precursors.
Equally important is the
minimisation of sub-optimal
micropores of less than 100 Å
diameter. Cracking that occurs in
micropores is severely diffusion
limited, leading to excessive yield
of coke and gas. As shown in Figure
5, MIDAS® catalysts have a
substantial advantage over the
base catalyst in use at PES in both
mesoporosity and low level of
micropores.
Resid cracking involves the NATIONWIDE SERVICE
destruction of complex, metals- FREE ESTIMATES
laden hydrocarbons. The design SINCE 1968
of the MIDAS® Gold FCC catalyst
for the 1232 unit took into
www.midwest-steel.com
demolition@midwest-steel.com
713-991-7843
 vanadium from the FCC feed. As shown in Figure 6, this goal vanadium tolerance than the previous catalyst, as
was readily achieved and the catalyst showed better measured by microactivity retention.

Table 2. Theoretical Fe removal via catalyst flushing Catalyst fluidisation

The ability to fluidise and circulate catalyst is critical for this
Fresh catalyst
Model III FCC unit. The ratio of minimum bubbling velocity
Catalyst Fresh Unit Ecat Quantity of Equivalent to minimum fluidisation velocity (Umb/Umf ) is a well known
add rate catalyst iron iron flushed iron feed iron*
measure of a catalyst’s ability to meet these goals. With the
tpd wt% wt% lb/d ppmw switch to MIDAS® Gold, the Ecat Umb/Umf actually improved
2.0 0.30 0.75 18 1.1 despite higher iron on the Ecat. Adjustments were also made
5.0 0.30 0.75 45 2.8 to fluidisation media to help optimise catalyst circulation.
10.0 0.30 0.75 90 5.7
Conclusion
15.0 0.30 0.75 135 8.5
There are numerous causes that lead to poor FCC yields and
Purchased Ecat profitability. Contaminant iron in FCC feed can have severe
Catalyst PCAT iron Unit Ecat Quantity of Equivalent impacts on the operation of the FCC leading to significantly
add rate iron flushed iron feed iron* lower profitability. The first step to steady reliable operation
tpd wt% wt% lb/d ppmw is to routinely monitor crudes, catalytic cracker feed and
2.0 0.60 0.75 6 0.4 Ecat for advance warning that iron is on the rise. It is
important to properly analyse the feed with the appropriate
5.0 0.60 0.75 15 0.9
ASTM method, as discussed. Next, the refinery should work
10.0 0.60 0.75 30 1.9 closely with its catalyst supplier to monitor the unit Ecat for
15.0 0.60 0.75 45 2.8 total incremental Fe, diffusivity and nodule formation with
*Assumes a charge rate of 50 million bpd and 24˚API SEMs. If economical, refiners should work to minimise feed
iron through selective crude purchases and/or chemical feed
treatment. Units with the possibility of elevated iron should
consider selecting an FCC catalyst with an optimised pore
size distribution, such as Grace’s MIDAS® technology. Finally,
refiners should implement a catalyst flushing programme
that can be 100% fresh catalyst or a combination of fresh and
purchased Ecat. Sometimes this requires an upgrade in
catalyst storage and loader capacity, but can be justified by
the prevention of a single iron poisoning event.
With appropriate planning, monitoring and
collaboration, it is possible for refiners to maintain
profitable operations in the face of highly variable feed
contaminants such as iron.

Acknowledgements
The authors would like to thank the management of
Figure 5. Hg Porosimetry for MIDAS® FCC catalyst Philadelphia Energy Solutions and all of the Grace
compared to other catalysts. employees that contributed to this article.

Note
This article is based on a paper presented at the
AFPM Annual Meeting in San Francisco, California, on
13 - 15 March 2016.

Figure 6. MIDAS® Gold retained higher Ecat MAT activity
at constant Vanadium in the PES 1232 unit.
References
1. American Society of Testing and Materials D5708, ‘Standard Test
Methods for Determination of Nickel, Vanadium, and Iron in Crude
Oils and Residuals Fuels by Inductively Coupled Plasma (ICP) Atomic
Emission Spectrometry’.
2. American Society of Testing and Materials D5863, ‘Standard Test
Methods for Determination of Nickel, Vanadium, Iron, and Sodium
in Crude Oils and Residuals Fuels by Flame Atomic Absorption
Spectrometry’.
3. SALEMO, P., KIRCHGESSNER, D. and AIKMAN, J., Controlling cracker
contamination: part one, Hydrocarbon Engineering, September 2016,
pp. 75 - 80.
4. Baker Hughes, ‘How pH Management Improves Desalter Operations’,
2012.
5. ZHAO, X., CHENG, W. C. and RUDESILL, J. A., ‘FCC Bottoms Cracking
Mechanisms and Implications for Catalyst Design for Resid Applications
AM-02-53’, 2002 NPRA Annual Meeting, San Antonio, Texas.

November 2016 94 HYDROCARBON

ENGINEERING
 There has been a growing movement amongst Western refineries to purchase rather
than produce hydrogen, a trend now also emerging in the Middle East, India and Asia.
Phil Morris, Air Products, UK, explains what is driving this shift in approach.

W
ith the potential to lose up to
US$1.5 million a day due to process
cutbacks or shutdowns, any refinery knows
that a loss in hydrogen supply is bad news.
Yet it is not uncommon. Just this summer, for example, a
fire caused by a heater tube failure in a hydrogen unit at
Phillips 66's Lake Charles refinery in Louisiana resulted in
temporary shutdown.
Of course, if a hydrogen plant goes down, it will, in
turn, result in a loss of steam generation, with major
knock-on effects for the entire refinery process – the
recent loss of steam and resulting shutdown of the
hydrocracking unit at Marathon Petroleum Corporation’s
Galveston Bay refinery in Texas is a case in point.
Such risks – and week upon week of potential
multi‑million dollar losses – are not a scenario that any
refinery wants to contemplate, and it is perhaps this,
above all else, that is driving the trend to buy in a more
reliable hydrogen supply, rather than produce the
hydrogen on site.

HYDROCARBON 95 November 2016

ENGINEERING

Figure 1. IOC cumulative H2 awards since 2000.
Figure 2. The Air Products Convent Louisiana
hydrogen plant supplying the Motiva refinery, and the
Air Product’s USGC pipeline system.
Figure 3. Port Arthur II: a 110 million ft3/d hydrogen
plant with integrated gas turbine located at
Port Arthur, Texas, and supplying Valero Energy.
A complex art
Efficient and reliable hydrogen production is an exact
science that is reliant on a number of factors – and this is
where the expertise of industrial gas companies are
increasingly being recognised by the refinery market. Since
2000, the top six international oil companies have
awarded 2.7 million tpy (3 billion ft3/d) of hydrogen, of
which more than 80% has been outsourced to industrial
gas experts.
November 2016 96 HYDROCARBON
ENGINEERING
Air Products is one such company aiding this trend. It
has over 50 years experience in supplying hydrogen via
pipeline or from a dedicated plant located at or near a
customer’s refinery facility.
This experience, as well as the efficiencies achieved by
smart standardisation of design and technology, is
encouraging a number of refineries to purchase their
hydrogen from Air Products, rather than produce it
themselves. This is not a trend restricted to the Western
world either. In India, for example, the company is behind
the country’s second hydrogen sale of gas contract, with
clear signs that a move to buy, rather than produce, is
gathering momentum there too.
Reliability matters
One of the key factors affecting supply reliability is the
ability to balance the limitations of plant technology with
the need to operate at maximum efficiency.
The tendency with customer-run plants is to ease back
after the initial test period. By contrast, industrial gas
experts are able to use the knowledge and experience of
their engineers and operators to run plants at their limit.
This, in turn, allows them to operate typically at 3 - 5%
better energy efficiency, and with efficiency guarantees.
When one considers that energy costs account for 75 - 85%
of hydrogen production for large scale hydrogen
production facilities, this is a significant potential saving.
But, while outsourcing hydrogen presents a valuable
opportunity for refineries to achieve efficiencies, the key
driver to date has been guaranteeing reliable supply – and
this is where the plant technology itself really counts.
The two key pieces of process equipment within a
hydrogen plant – the reformer and hydrogen purification
systems – are often supplied by different parties, meaning
that if issues occur, repairs can be complex and lengthy.
Air Products has removed this risk by forming a
hydrogen alliance with Technip, combining its own
strength in gas separation technology and plant
operations with Technip’s steam methane reformer (SMR)
design and construction expertise. The partnership, which
has been running for over 25 years, has completed in
excess of 35 projects, many being >80 million ft3/d (or
90 000 Nm3/hr) H2.
The nature of its operations have led the way for the
sale of gas (SOG) business model worldwide, and the
company now operates the world’s largest hydrogen
pipeline which, located in the US, unites 22 hydrogen
plants, with a total capacity of over 1.4 billion ft3/d. It is
pipeline systems such as these that mean if an event
disrupts operations on one side of the Gulf, for example,
hydrogen can keep flowing from the other, ensuring
uninterrupted, reliable supply.
The plants themselves are also custom built to a bespoke
design, making operating trends and challenges easier to
identify and monitor. Operating and previous project
experience is fed back into the design of each new facility,
and, with a network of over 80 plants, if an issue is identified
with one plant, it can easily be addressed on the other 79.
This multi-plant execution and repeat engineering
offers a number of other advantages – not least 5 - 10%
 HIGH STANDARD
VALVES FOR
NON-STANDARD
CONDITIONS.

TRI-CON TRI-CHECK TRI-BLOCK

WWW.ZWICK-ARMATUREN.DE

Figure 4. An operator measuring reformer tube
temperatures inside the reformer box at the Sarnia,
Ontario, hydrogen plant.
Figure 5. An operator checking the operating
conditions in the reformer penthouse at Sarnia.
lower capital costs. Factors such as extensive preventive
maintenance programmes and shared spare parts mean that
a reduction in operating costs of up to 10% is also
achievable.
Tailored solutions
The importance of an expert team in securing these
benefits, and ensuring a reliable and efficient hydrogen
November 2016 98 HYDROCARBON
ENGINEERING
supply, should not be underestimated, however.
Producing and supplying hydrogen is a core business to
industrial gas companies – a fact that affords them the
necessary expertise to develop tailored solutions that
can address a refiner’s long term needs.
Air Products, for example, has recently signed a long
term industrial gas supply agreement with Bharat
Petroleum Corporation Limited (BPCL) to build, own and
operate several new industrial gas production facilities
in India. The new facilities will supply industrial gases to
BPCL’s Kochi refinery, which is currently undergoing a
US$2.6 billion integrated expansion project that will
increase its crude refining capacity to 15.5 million tpy
(approximately 310 000 bpd).
Over 15 tph of hydrogen will be consumed by the new
Integrated Refinery Expansion Project, which will enable
BPCL to produce Euro 5 grade fuels while also making
propylene feedstock for a downstream petrochemicals
unit. The facility incorporates two 50% steam reformer
hydrogen trains, which have an ability to operate on
either natural gas or naphtha feedstock. There is also the
option to use refinery fuel streams as supplemental
feedstock when available.
Interestingly, a gas turbine is integrated with the
SMRs to allow the facility to be independent of the
state power grid and to operate in ‘island mode’ as
required. The hot air exhaust from the gas turbines is
used as hot air feed to the reformers, thereby improving
the overall efficiency of the combined hydrogen and
power production processes.
It goes without saying that the needs and
requirements of every refinery are different, varying
between oil companies and regions. The trend in
outsourcing hydrogen supply is a clear recognition of
the intelligent and bespoke approach that an industrial
gas expert can apply to ensuring greater reliability and
efficiency of hydrogen supply, reducing costs and,
critically, boosting the bottom line by improving per
barrel production.
But what of environmental and safety regulations?
Tackling legislation and regulations
Crude feeds are getting heavier and more sour, which in
turn means more hydrogen is required to not only
produce higher value product mixes, but also to meet
increasingly tight low sulfur fuel regulations globally.
In Europe, for example, less than 10 ppm of sulfur is
currently permitted in both gasoline and diesel. This has
steadily been falling from previous limits of 500 ppm in
the 1990s. The US is following suit and further tightening
its fuel standards with its Tier 3 programme being
implemented as of January 2017, requiring an annual
average standard of 10 ppm for gasoline here too. It is a
trend that is emerging in developing countries as well,
with India, for example, expected to require 10 ppm by
2020.
Tighter environmental regulations such as these
increase the amount of hydrogen required and make the
need for reliability and efficiency even more acute.
Refineries simply cannot afford an interruption to
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Figure 6. An Air Products hydrogen plant located in
Rotterdam, the Netherlands, supplying ExxonMobil
and other Air Products’ pipeline customers in the
region.
supply. But there is growing recognition of the superior
safety standards industrial gas companies can offer in
the production of hydrogen too.
Hydrogen production operates at temperatures far in
excess of those that refineries are used to managing.
Industrial gas companies have the necessary expertise to
manage these temperatures to world leading safety
standards.
Of course, safety and environmental regulations vary
from region to region, and many oil and gas businesses
are preferring to outsource this headache – at least from
a hydrogen production perspective – to an industrial gas
expert.
Industrial gas companies are well placed to respond.
In many of Air Products’ SMR plants, for example, low
NOX burners and selective catalytic reduction (SCR) units
are deployed to meet strict environmental regulations in
specific regions, with continuous safety training
programmes also enforced.
Pushing innovation
Taking the decision to purchase rather than produce
hydrogen need not mean that refineries miss out on the
cost saving opportunities presented by hydrogen
recovery, however.
Whilst offgases were historically flared or burnt for
energy, there is now a growing move to purify these
gases to recover hydrogen that can be re-used in the
refining process. By recovering hydrogen in this way,
refineries can reduce the amount they need to produce
or purchase, cutting costs.
Far from discouraging this process, savvy hydrogen
producers are in fact encouraging it. Air Products for
example, supports refineries in improving and
optimising their systems, offering hydrogen recovery
using cryogenic or membrane technology. It has
already installed over 90 systems in oil refineries
worldwide, which have the ability to recover 90+% H2
at 90+% purity.
November 2016 100 HYDROCARBON
ENGINEERING
One such example is the installation of a cryogenic
system in an ExxonMobil US Gulf Coast refinery. Here,
95 million ft3/d of a combined hydrocracker offgas and
a catalytic reformer crude hydrogen stream is processed
to produce a purified hydrogen product, a C2+ liquid
product and refinery fuel.
Membrane systems are widely used to treat a
number of refinery offgases such as hydrotreater and
hydrocracker purge streams and catalytic reformer
crude hydrogen.
It is clear, then, that rising hydrogen costs continue
to push innovation amongst suppliers operating both
in the Western and developing world, with refineries
increasingly expecting smart solutions that offer more
than just a hydrogen production facility.
Air Products embraced this challenge as part of the
hydrogen production/cogeneration plant projects,
developed next door to a Valero Energy Corporation
refinery in Port Arthur, Texas. What set this project
apart was its successful integration of combined cycle
technology and SMR technology. Two separate
projects were completed for Valero; the first project
integrated a 37 MW GE Frame 6 gas turbine with a
105 million ft3/d steam reformer and the second, larger
integrated facility allowed this plant to simultaneously
produce about 100 MW of electricity, 110 million ft3/d
of hydrogen and up to 1.2 million lb/hr of steam.
In this second facility, there are four major operating
units: an SMR hydrogen plant that also produces steam;
a heat recovery steam generator; a 80 MW GE Frame 7
gas turbine generator, the exhaust of which is used as
a combustion air source by both the heat recovery
steam generator and the SMR; and a 20 MW
auto extraction/backpressure steam turbine generator
that produces power and exports steam at two
different pressures.
This combination of technologies results in an
efficient, reliable and safe supply of hydrogen, steam
and power, which, in turn, allows the refinery to convert
more than 300 000 bpd of crude oil into jet fuel, low
sulfur diesel, petrochemical feedstocks, petroleum
coke, and conventional and reformulated gasoline.
These facilities at Port Arthur, and under
construction at the BPCL refinery in India, are the only
SMRs worldwide with an integrated gas turbine
supplying refinery hydrogen, and are a testament to the
value that refineries can gain by engaging an industrial
gas expert.
Conclusion
At the heart of all of these partnerships is a desire for a
long term and reliable hydrogen supply, without which
oil and gas companies cannot operate or turn a profit.
But, in outsourcing their hydrogen requirements,
refineries are increasingly finding opportunities for
efficiency and innovation too, allowing them to
concentrate on, and even enhance, their core business.
As regulations tighten, and margins remain in flux, the
trend to purchase rather than produce hydrogen looks
set to gain ever growing momentum.
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 Greg Bury, UniversalPegasus International, Canada, and President of the Gas Processing
Association of Canada (GPAC), discusses the challenges and opportunities available in the
Canadian marketplace for the natural gas industry, in light of the US shale boom.

A
MULTIFACETED
MARKETPLACE
November 2016 102 HYDROCARBON
ENGINEERING
Emerald Lake in Yoho National Park,
British Columbia.
T
he Canadian natural gas marketplace is
experiencing considerable challenges due to the
changing supply and demand environment in
North America. For decades, the US market
purchased the bulk of Canadian natural gas for
consumption, both residential and industrial. With the
evolving development of drilling techniques and hydraulic
fracking, more natural gas has been discovered throughout
North America. It quickly became evident that the US was
going to be able to produce enough natural gas
domestically to meet their own supply demands. While
this was beneficial for the US, it put the Canadian gas
industry in an unfortunate position.
This article will outline the challenges and
opportunities facing the Canadian natural gas industry,
including the current resources available, pipeline and
other transportation methods, gas processing plants and
midstream capabilities, potential customers, and the
current state of the LNG industry in Canada.
There certainly are challenges today but, in spite of
these, Canada is a preferred trading partner with a vast
majority of countries worldwide. The country is a leader
in developing these resources, and has demonstrated a
reasonably stable political environment, which creates
confidence for investment.
Canadian natural gas resources
Canada currently ranks 20th in the world for natural gas
reserves and fifth in natural gas production capacity.
Interestingly, the US has moved into first place, ahead of
Russia for natural gas production, and fifth in the world
for natural gas reserves, while Russia is second for natural
gas production. The EU is third, but only produces
marginally more than Canada processes.
HYDROCARBON 103 November 2016
ENGINEERING
 Canada and the US are two of the largest gas producers in side of the Canadian Rocky Mountains, approximately
the world. This has created a domestic supply/demand issue, 1000 km from the Canadian west coast. Although the
which has kept natural gas prices very low. natural gas industry is struggling, due to the low
Partially due to the low natural gas prices in North America, worldwide oil and gas prices, they are still actively
the domestic gas producers have been actively targeting developing natural gas plays that are high in NGLs and
reserves with an abundance of natural gas liquids (NGLs) and condensates. These commodities help offset the low
condensates. In western Canada, these are predominantly in gas prices to make the overall play profitable.
the Montney, Duvernay and Horn River plays, located in Alberta The Canadian climate has always been a challenge
and British Columbia. These resources are located on the east for the oil and gas industry operating there – winters
are long and severe, with many resources located in
Table 1. Annual worldwide gas production ranking remote locations. Dedicated engineers, operators, and
producers have overcome these challenges and
Rank Country Continent Annual natural Date of
gas production information designed a variety of techniques to maximise the
(m3) recovery of resources in virtually any environmental
– World – 4 359 000 000 000 2010 est. condition. Canadian oil and gas professionals are
routinely hired to provide services in other countries,
due to their diverse skills with gas processing in cold
1 US North 728 200 000 000 2014 est.
America climates and adverse geographical locations.
2 Russia Eurasia 669 700 000 000 2013 est.
Pipeline and transportation
infrastructure
– EU – 164 600 000 000 2012 est. To understand the logic of the Canadian pipeline and
transportation network, its history should first be
3 Iran Asia 162 600 000 000 2012 est. reviewed. In the 1960s, Canadian natural gas was
primarily produced and distributed into the Canadian
4 Canada North 143 100 000 000 2012 est. market from western to eastern Canada. In the 1980s,
America the US’ west coast was in need of natural gas, so a
5 Qatar Asia 133 200 000 000 2011 est. series of pipelines were built from western Canada
along the US’ western seaboard, which are still in
6 Norway Europe 114 700 000 000 2012 est. regular use today. Their purpose was to supply
California and the other western coastal states. Then,
7 China Asia 107 200 000 000 2012 est.
in the early 2000s, the US midwest was in need of
natural gas, so pipelines were built between British
Columbia to the Chicago area.
8 Saudi Arabia Asia 103 200 000 000 2012 est.
In Figure 2, it is evident that the pipeline network is
heavily concentrated in Alberta, and is primarily
9 Algeria Africa 82 760 000 000 2011 est. located in the centre of Canada and the US. Currently,
this is the primary method of exporting natural gas
10 Netherlands Europe 80 780 000 000 2012 est. from Canada. Rail and trucks are also used to transport
natural gas, NGLs and condensates, although these are
not generally considered the most effective
transportation methods due to cost and safety.
Due to the supply levels in the US, its need
for Canadian natural gas is projected to decrease
substantially over the next several years. As in
Figure 3, marketable production will grow
alongside Canadian demand, but there is still
excess natural gas, NGLs and condensates to
market to other customers. Canada currently
uses natural gas as its primary fuel for industry,
commercial and residential uses, and it is
primarily transported via pipeline to major
cities.

The gas processing and

Figure 1. A map of Canada. Copyright: 2013 Canadian Centre for
Energy Information.
midstream industries
Canada, primarily western Canada, houses
hundreds of world class gas processing plants
that are in operation today. They have been
designed and built by some of the best engineers

November 2016 104 HYDROCARBON

ENGINEERING
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 As demonstrated in Figure 5, the trade
of natural gas to the US has been
decreasing rapidly since 2005 and is
projected to continue. The industry is
fully aware of this trend and is preparing
to adapt to this new reality. For the
foreseeable future, supply will outpace
demand in the North American
marketplace.
To make matters even more
challenging, the US is positioned to
become a net natural gas exporter within
a few years and has several LNG export
facilities in operation and under
construction. The US also expects to
export natural gas, by pipeline, primarily
into Mexico, as well as to eastern Canada
Figure 2. Canadian natural gas pipeline network. and its LNG plants, with Europe being the
primary target market.

Canadian LNG industry

The Canadian LNG industry is currently in
its infancy, but it has great opportunities
on both coasts. There are resources,
political stability, talent and the
workforce to implement these projects.
Through the proposed Canadian LNG
facilities on the west coast, natural gas
can be transported to the Asian markets
at a faster rate than any other LNG
facilities in the world.
The Canadian natural gas industry
understands what needs to be carried out,
as does the Canadian LNG industry. The
challenge is building some of these
projects under the current worldwide
natural gas supply and demand model.
Figure 3. Canadian natural gas production and exports. Similar to North America, the world
prices for natural gas have declined,
which makes any new LNG projects less
and contractors in the world, as Canada’s harsh climates require special likely to proceed. However, the oil and
considerations in design, construction and operation to ensure optimisation gas industry is familiar with the volatility
of the final gas and NGL products. of the world markets and these projects
The plant in Figure 4 is a standard 200 million ft3/d sweet gas plant require a longer outlook. Currently, many
located in northeast Alberta. This Seven Generations Energy project was multi-national oil and gas companies have
awarded to a Canadian engineering firm in April 2014. Through coordination partnered up with Canadian producers to
with the various contractors and construction teams, and cooperation with build these LNG projects.
the government regulators, the project only took 19 months (including
construction) through a Canadian winter. Where does the industry go
Canada's gas processing and midstream industries are developed and from here?
ready to support growth in the natural gas, NGLs and condensate customer The solution is easy, however, executing,
base. With sophisticated drilling programmes, which feed into the gas funding and constructing it is challenging.
processing plants and then into the current distribution system, these plants The country’s oil and natural gas reserves
are ready to transport their processed gases, NGLs and condensate to LNG are landlocked and well over 1000 km
facilities on the Canadian coasts. from the nearest coast. The current
pipeline routes are primarily centralised
Customers and generally run north to south,
The Canadian natural gas industry essentially has two customers. There is the accommodating Canada’s largest current
domestic customer base in Canada, which is growing, and the US customer customer, the US. For Canada to be a
base, which is decreasing. world class exporter of natural gas, NGLs

November 2016 106 HYDROCARBON

ENGINEERING
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 Figure 4. Seven Generations sweet gas plant in northeast Alberta.
Figure 5. Canadian natural gas production, demand
and exports (2005 - 2025).
Figure 6. Global crude oil, LNG and natural gas prices.
and condensates, it must get its resources to the coasts,
where LNG plants need to be constructed to access the
world markets.
The bulk of Canada’s resources straddle the provinces
of British Columbia and Alberta, meaning the resources
must cross from the basins, over the Rocky Mountains, to
November 2016 108 HYDROCARBON
ENGINEERING
access the west coast. To achieve this, Canada must
secure the right federal and provincial permits and
negotiate acceptable terms with many First Nation
communities.
All oil and gas projects need to provide a positive
return on investment (ROI) before a final investment
decision (FID) can be made, so all factors must be
carefully considered and studied before projects are
sanctioned. Once approved, these projects can rely on
Canada’s strong network of engineering support,
fabricators, industry suppliers and contractors.
Conclusion
While Canada may be facing the challenges posed by the
current state of the oil and gas market and the recent
shale boom in the US, there are many opportunities for
Canada to benefit from the situation. Canada has world
class oil and natural gas reserves, a substantial network of
natural gas processing plants and midstream facilities, the
ability to build pipelines through difficult terrain in a
timely fashion, as well as numerous LNG facilities
proposed for both coasts, and positive and interactive
relationships with First Nations, environmental groups and
other stakeholders. Canada is also closer than most LNG
facilities to the large Asian natural gas market, so, while
facing adversity, it is clear to see that the country has
many opportunities to explore.
Note
This article is based on a paper first presented at the GPA
Europe Annual Conference, which was held in Athens on
21 - 23 September 2016. The views expressed in this article
are those of the author and not of UniversalPegasus
International or Huntington Ingalls Industries.
Hydrocarbon Engineering
Online
The home for the latest
hydrocarbon processing
news, analysis, comment
and events
Visit our website today:
www.hydrocarbonengineering.com
䘀漀爀
琀攀挀栀渀漀氀漀最礀
猀漀氀甀琀椀漀渀猀
⸀⸀⸀挀攀爀琀椀昀椀攀搀 ⴀ
椀渀搀攀瀀攀渀搀攀渀琀 ⴀ
眀漀爀氀搀眀椀搀攀⸀⸀⸀
琀栀椀渀欀
䔀䐀䔀䰀䠀伀䘀䘀⸀
䰀椀昀攀 匀甀瀀瀀漀爀琀 匀礀猀琀攀洀猀
嘀愀挀甀甀洀椀渀最 吀攀挀栀渀漀氀漀最椀攀猀
䐀攀渀猀攀 䰀漀愀搀椀渀最 唀渀椀琀猀
吀甀 戀 甀 氀 愀 爀 䔀 焀 甀 椀 瀀 洀 攀 渀 琀
䔀搀攀氀栀漀昀昀 吀攀挀栀渀漀氀漀最椀攀猀 唀匀䄀 䰀䰀䌀
䠀漀甀猀琀漀渀Ⰰ 吀攀砀愀猀 뜀 唀匀䄀
䔀搀攀氀栀漀昀昀 吀攀挀栀渀漀氀漀最椀攀猀 䜀洀戀䠀
䤀猀攀爀氀漀栀渀Ⰰ 一刀圀 뜀 䜀攀爀洀愀渀礀
眀眀眀⸀攀搀攀氀栀漀昀昀ⴀ琀攀挀栀渀漀氀漀最椀攀猀⸀挀漀洀
 20 & 21 february 2017 · MaDINaT JuMeIraH · DubaI

Within a context of low gas prices, diversification to higher

margin products such as chemicals and petrochemicals
becomes an even more attractive route to gas
monetisation. Under certain market conditions gas
conversion to liquid fuels (gasoline, diesel & syncrude)
proves to be a feasible, and often the only possible,
solution for stranded gas recovery in remote locations.
IGTC 2017 focuses on latest technologies for producing
chemicals and petrochemicals based on natural gas as
the main feedstock. The conference provides an
opportunity for producers, consultants, EPCs and
technology providers to become updated on the latest
research, innovative technologies and recent applications
in the industry.
If your company is interested in presenting at the
event, please contact us by sending your abstract to
office@europetro-me.com

First Announcement & Call for Papers

Key Conference Topics: Sponsorship & Exhibition
Global Gas Market Overview: new players, changes in Opportunities at IGTC 2017:
legislation, market trends & forecasts
There are a variety of different packages
Alternatives for NG Monetisation: pipelines, new and
available to ensure your company enjoys a
ongoing LNG projects
high profile at our events.
Ammonia and Derivatives - Urea & Ammonium Please contact us for more details.
Nitrate: technology innovations, current project case
studies & updates
Methanol and Derivatives - Olefins (MTO), DME: How to contact the Organiser:
technology innovations, equipment, projects, case
Euro Petroleum Consultants DMCC
studies
PO Box 625766, Dubai
Synthetic Liquid Fuels – GTL (Fischer-Tropsch), MTG: United Arab Emirates
market challenges & opportunities, new technologies for T: +971 (0)4 421 4642
mega and mini concepts, project updates E: office@europetro-me.com

www.europetro.com/en/igtc2017
Ad Index

Page Number | Advertiser

18 | 22nd World Petroleum Congress
105 | ARCA Regler GmbH
IBC | Axens
IFC | BASF 59 | Jonell Filtration Group
11 | Brodie International 04 | Kelvion
07 | CB&I 99 | Kurita Europe GmbH
91 | Chart Lifecycle, Inc. 33 | Magnetrol International
21 | Chevron Lummus Global 43 | Merichem Company
81 | CRI Catalyst 101 | Metso
75 | Criterion Catalysts & Technologies 93 | Midwest Steel
109 | Edelhoff Technologies 69 | Mokveld Valves
55 | EMCOR Industrial Services 49 | NETZSCH
27 | Enersul 85 | Nikkiso Cryo
39 | ENI 107 | OHL Gutermuth Industrial Valves GmbH
37 | ExxonMobil 50, 105, 109 | Palladian Publications
30 | Flexim 53 | Process Consulting Services, Inc.
87 | Goodwin International 45 | Quest Integrity
17 | Hoerbiger 22 - 23 | RasGas
29 | Honeywell OBC | Rosen
OFC, 71 | Honeywell UOP, Callidus Technologies 09 | Sabin Metal Corporation
15 | Hydrocarbon Engineering 02 | Sandvik Process Systems
110 | IGTC 2017 40 | Tank Storage Germany
15 | Intergraph CADWorx & Analysis Solutions 56 | Trinity Consultants
107 | Intertek Pilot Plant Services 65 | Vaseco
63 | Johnson Matthey Process Technologies 97 | Zwick Armaturen GmbH

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 15 FACTS ON...
RESERVES & OILSANDS
In 2011, OPEC countries
owned NEARLY 82% of
total crude oil reserves
WORLDWIDE – this
percentage remained
relatively stable with
slight changes until
2015, according to
Statistica
Because oilsands does
not flow like conventional
crude oil, it must be
MINED or HEATED
UNDERGROUND before Over the last 35 years, Canadian crude oil
it can be processed production has increased by 2.2 million bpd,
Although Saudi Arabia
has about 100 MAJOR
OIL AND GAS FIELDS,
more than half of its oil
reserves are contained
in eight fields in the
northeast portion of
the country
OILSANDS refers to
a mixture of sand,
water, clay and
bitumen
Iraq has five
SUPER GIANT
the Athabasca (Alberta) oilsands area
FIELDS
(defined as holding more
than 5 billion barrels of
oil reserves) in the south
that account for about
60% of the country’s
total proved oil reserves
November 2016 112 HYDROCARBON
ENGINEERING
Russia’s proved
Most of Venezuela’s
oil reserves were
PROVED
80 BILLION BARRELS oil reserves are
as of January 2015, according located in its
to the Oil and Gas Journal – ORINOCO heavy oil
most of Russia’s reserves are belt, which holds
located in West Siberia and in
the Urals-Volga region 220.5 billion barrels
Oilsands development is About
expected to contribute over
70%
CAN$4 trillion of Iran’s crude
to the Canadian economy oil reserves
over the next 20 years, are located
according to CERI onshore, with
the remainder
mostly located
mostly due to the growth in supply from offshore in the
the oilsands, according to the CAPP Persian Gulf
In 2014, Venezuela had The giant Ghawar field in
298 billion barrels Saudi Arabia is the world’s
of proved oil reserves, LARGEST OILFIELD
the largest in the in terms of production and
world – the next largest total remaining reserves –
are in Saudi Arabia it has estimated remaining
(268 billion barrels) proved oil reserves of
and Canada 75 BILLION BARRELS,
(173 billion barrels), more than all but seven
according to the EIA other countries
Reserves shallow enough to mine
(up to 75 m) are found only within IRAN shares a
number of onshore
and offshore fields
Oilsands are recovered with neighbouring
using two main methods: countries, including
MINING and DRILLING IRAQ, QATAR,
(in situ) – the method used KUWAIT and
depends on how deep the SAUDI ARABIA
reserves are deposited
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