A Hart Energy Newsletter Sample

VOL. 2 • ISSUE 4 • FEBRUARY 2010

Operational Excellence: Balancing Safety, Reliability

and Efficiency
Preventive maintenance pertaining to thermal
equipment, such as the heat exchanger depicted
in this photo, is an important component of a
refinery’s operational excellence program.
>> Current projections by many indus-
try experts are that global refining over-
capacity, amid reduced demand, will
exert downward pressure on the refining
industry for the next three to five years.
Against this backdrop, advances in new
refining technology will primarily focus
on improving current process assets.
Most capital investment in the energy
business will be dedicated to upstream
oil and gas exploration and production
projects. Budgets for new downstream
capital projects related to refining, pet-
rochemicals, gasification and gas-to-
liquids will be significantly less relative
to upstream projects.
Rather, improvements to existing
technology combined with “opera-
tional excellence” strategies will play
a large role in downstream processing
profitability. Nonetheless, some grass
roots refinery projects and major ex-
pansions at existing facilities are still
expected to be completed and onstream
between 2012 and 2015.
The thrust of most investments
planned by refiners revolves around
operational excellence. Today, refiners’
priorities from Asia to North America
include implementing operational ex-
cellence strategies to increase refin-
ing margins, and adopting measures to
counter reduced demand with options
such as switching from light and sweet
crude or reducing oil-processing rate...
More >>

ANALYSIS In This Issue:

>> Less than expected productivity However, low mar- 3
and efficiency improvements in hydro- gins seem to lower
carbon processing facilities may not be the productivity 4
7
an indication of a failure to compete. It growth engine, 2

seems more of an indication that pro- which accelerates 5

6

ductivity is closely influenced by fluc- again when the mar- 1

tuations in market demand. ket becomes more

There is a steady long-term positive robust...
trend in productivity efficiency (i.e., Sample Issue
(regular issues of Refinery Tracker average 12-14 pages)
operational excellence) in the industry. More >>

FEATURE REGIONAL PROJECT

Subscribe today and get Operational Excellence: Balancing UPDATES
Safety, Reliability and Efficiency 1 Africa
-Technology analysis ANALYSIS 2 Asia
-Refinery expansions, closures and turn around Productivity and Operational 3 CIS
-Worldwide database of refinery project Excellence 4 Europe
-Topical Q&A PROCESSING & 5 Latin America
-Insight to optimizing processes and streamlining operations OPERATIONS 6 Middle East
Recent Trends in Improving Energy
7 North America
Refinery Tracker, your biweekly newsletter detailing refining Efficiency
8 Worldwide
projects and capacity expansions. QUESTIONS &
ANSWERS UPDATES KEY
Contact Lesley Hart for information Efficiency and Operational Excellence CONTACT INFO
Programs Applied to Aromatics Plant
lhart@hartenergy.com or +1.713-260-6462 Efficiency
www.WorldFuels.com/RT

1 Copyright 2010. Hart Energy Publishing, LP.

February 2010
Refinery Tracker

QUESTIONS & ANSWERS

Efficiency and Operational Excellence Programs Applied to Aromatics
Plant Efficiency
>> Aromatics operators currently using
distillation trays instead of structured
packing should consider the relatively
easy revamp when changing to struc-
tured packing. Distillation trays require
a lot of on-site welding on new tray
rings, which is why structured packing
should be considered to compress re-
vamp and turnaround intervals.
Refinery Tracker: With reduced capital
investment, the focus has shifted toward
efficiency and operational excellence
programs. How is this benefiting aro-
matics plant efficiency?
Steve Norwood, Norwood Consulting:
With flat gasoline margins, refiners are
trying to find ways to monetize cata-
lytic reformer and fluid catalytic crack-
ing operations, “traditional” gasoline
producing machines, by shifting their
yields more toward chemical grade aro-
matics. This is even more so with cata-
lytic reformer operations.
Taking into consideration that many
coastal refiners operate paraxylene and
styrene units downstream from catalytic
reforming operations, yield improve-
ments and energy reduction from these
units are primary objectives for remain-
ing competitive in the aromatics busi-
ness.
Much of the energy optimization oc-
curring in an aromatics unit is in the dis-
tillation train, operating in the positive
pressure range. Typical fractionation
columns seen in aromatics processing,
such as ethylbenzene and styrene plants,
require a significant investment in dis-
tillation technology. For example, the
separation of ethylbenzene from xylene
isomers usually requires about 300 theo-
retical stages and distillation is effected
in the positive pressure range of about
1.0 to 5.0 bars. Today, column design
is done with about 410 trays divided
into twin columns with a tray spacing
of about 280 millimeters and approxi-
mately 70% tray efficiency.
However, use of structured
packing instead of trays could signifi-
cantly reduce energy consumption due
to the fact that structured packing has
a much lower pressure drop compared
to trays.
High performance structured pack-
ings are being applied to avoid liq-
uid buildup occurring from hydraulic
disturbances between the gas/liquid
interfaces in the transitional sections
between packed bed elements. Capacity
increases of as much as 50% have been
reported when hydraulic disturbances
are avoided.
It is obvious that any additional ca-
pacity achieved with structured packing
provides excellent opportunities for re-
vamping existing columns or reducing
capex for new columns by reduction in
diameter. In other words, a smaller di-
ameter distillation column with highly
efficient structured packing technology
can perform as well as a much larger
column with conventional trays. n

1 PROJECT UPDATES: Africa

Ugandan Government Awards Fea- crude,” according to the company. ESTIMATED TOTAL
sibility Study for Proposed Refinery “The study, which is scheduled for OUTPUT CAPACITIES BARRELS/
Switzerland-based Foster Wheeler of- completion in mid-2010, will also in- OF PROPOSED DAY
PROJECTS
ficials announced Feb. 2 that they’ve clude the assessment of options for
won a feasibility study contract from the the development of the oilfield, crude 2009 161,000
government of Uganda for a proposed transportation and an evaluation of the 2010 672,000
150,000-barrel-per-day oil refinery. relative economics of developing the 2011 180,000
“Foster Wheeler’s scope of work new refinery vs. alternative options, 2012 220,000
will include the development of the lo- including pipelines, for exporting the
2013 300,000
cation and configuration of the planned crude oil.” n
refinery, which will process Ugandan 2014 1,470,000
2015 300,000
2016 200,000
Unspecified Date 3,890,000
GRAND TOTAL 7,393,000
AFRICA

COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
UGANDA
New Refinery Undisclosed State-run with Eni 150,000 barrels per day Italian foreign minister said his government
Spa as partner is committed to support Eni Spa to build the
new facility.

Hart Energy Publishing 2 www.worldfuels.com/RT

February 2010
Refinery Tracker

A Sampling of Project Updates

Efficiency and Operational Excellence Programs Applied to Aromatics
>> Bi-weekly data service detailing re- facing the refining industry – process The below charts are a sampling of
fining projects and capacity expansions optimization, operations, financials, ef- the valuable data and information
with news about companies, people and ficiency and more – Refinery Tracker that Refinery Tracker provides every
regions. Focusing on important issues is a product that cannot be missed. issue. n

Sample Issue: regular issues of Refinery Tracker average 12-14 pages

COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
AFRICA: UGANDA
New Refinery Undisclosed State-run with Eni 150,000 barrels per day Italian foreign minister said his government
Spa as partner is committed to support Eni Spa to build the
new facility.
COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
ASIA PACIFIC: CHINA
Refinery Expansion Huizhou China National 22 million tons per year Phase 2 of upgrading project now under
refinery, Offshore Oil Co. way. Phase 1 completed in early 2009.
Guangdong
ASIA PACIFIC: INDIA
Crude Refinery Bhatinda Hindustan 9 million tons per year Hindustan Petroleum will need to increase
Petroleum (t/y)/May 2011 crude purchases from Iraq to 3 million t/y
from 2 million t/y
COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
LATIN AMERICA: COSTA RICA
Refinery Upgrade Recope Recope & CNPC 60,000 barrels per day Costa Rican government and China National
refinery by 2015 Petroleum Corp. partnership to triple
refinery capacity from 20,000 b/d to 60,000
b/d by 2015.
COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
EUROPE: TURKEY
Refinery Upgrade Izmit Tupras Residium upgrading Final decision made to produce 2.6 million
tons per year Euro-5 quality diesel; Upgrades
to fluid catalytic cracking unit cat reformer
and a crude/vac tower
COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
MIDDLE EAST: QATAR
Crude Refinery Ras Laffan Qatar Petroleum 140,000 barrels per
day; completion 2008
MIDDLE EAST: SAUDI ARABIA
Refinery Upgrade Yanbu complex SABIC 600,000 tons per SABIC plans to expand its purified
year (t/y) aromatics terephthalic acid and petroleum capacity to
capacity 700,000 t/y and 750,000 t/y, respectively.
COUNTRY/ CAPACITY/
LOCATION COMPANY NOTES
DEVELOPMENT COMPLETION DATE
NORTH AMERICA: UNITED STATES
Refinery Upgrade Port Arthur, Motiva 95,000 barrels per day Previously announced project with Shell/
Texas, refinery coker; 2012 Saudi Aramco (Motiva); Largest petcoke
unit in United States

Hart Energy Publishing 3 www.worldfuels.com/RT

February 2010
Refinery Tracker

PROJECT UPDATES: Worldwide Contact Information:

WORLDWIDE ESTIMATED TOTAL OUTPUT LESLEY HART

BARRELS/DAY
CAPACITIES OF PROPOSED PROJECTS
To subscribe to Refinery Tracker
2009 1,444,000 +1 713-260-6462
2010 3,597,000 lhart@hartenergy.com
2011 2,210,000
2012 5,382,000
2013 1,428,000 Hart Energy Publishing
1616 S. Voss, Suite 1000 • Houston TX 77057-2627 • USA
2014 1,994,000 www.hartenergy.com • www.worldfuels.com
2015 1,462,000 Copyright 2010 by Hart Energy Publishing. Reproduction prohibited ex-
cept for further use by the purchaser and expressly prohibited for resale.
2016 350,000 This information is obtained from publicly available sources and the intel-
ligence of the staff of Hart Energy Publishing. While every effort is taken
Unspecified Date 16,671,500 to ensure accuracy, it cannot be guaranteed to that this information has
not been superseded. Hart Energy Publishing cannot be held liable for the
TOTAL 34,538,500 results of actions taken based upon this information.

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