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2016
shale feedstocks
PTQ supplement
We create
chemistry
that makes
individual
refiners love
fueling the
world.
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4 shale q&a
Cover
MarkWests Majorsville complex in West Virginia gathers and processes shale gas from the Marcellus measures.
Photo: MarkWest
2016 The entire content of this publication is protected by copyright full details of which are available from the publishers. All rights
reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means
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care has been taken in the preparation of all material included in Petroleum Technology Quarterly and its supplements the publisher cannot
be held responsible for any statements, opinions or views or for any inaccuracies.
PTQ-MIDSTREAM-FY17_300dpi.pdf 1 3/1/2016 8:49:16 AM
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hydrocarbon streams, Merichems FIBER FILM Contactor offers a variety of caustic and amine treating processes
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Processing shale Pain then gain
feedstocks
2016
N
Editor obody expected a great year for shale oil. If not quite the shale
Chris Cunningham Armageddon that some predicted late in 2015, the downward bump in
editor@petroleumtechnology.com crude markets at the beginning of 2016 did nothing to stop the expected
and continuing cutbacks and sell-offs among North American producers. Over-
Production Editor stocking of crude, not expected to ease much before 2018, and declining margins
Rachel Storry
and output among refiners will ensure that light tight oil (LTO) production will
production@petroleumtechnology.com
be in retreat for the time being.
Graphics Editor In the meantime, as this issue of Processing Shale Feedstocks demonstrates,
Rob Fris refiners can mark time increasing their expertise in handling a relatively
graphics@petroleumtechnology.com unfamiliar feedstock: how to deal with exchanger fouling issues; best practice
for hydrotreating LTO sub-products; and making the most of new flows of
Editorial condensate. And, with our coverage of emerging production in Latin
tel +44 844 5888 773
America and China, there is a view of the horizon, rather than imminent
fax +44 844 5888 667
expectation, of shale oil as a mainstream global commodity.
Business Development Director While the downturn in shale oil production is leading to frowns among its
Paul Mason owners, other producers are even more worried about its medium- to long-
sales@petroleumtechnology.com term prospects and for different reasons. The recent deal between the
Organisation of Petroleum Exporting Countries (OPEC, which produces
Advertising Sales Office around 40% of the worlds crude) and Russia to cap production and so help
tel +44 844 5888 771
oil prices to ease upwards was the competitions latest aggressive response to
fax +44 844 5888 662
shale oil. The first, back in 2014, was OPECs determination to keep produc-
Publisher tion going at full pelt in the hope of choking off the shale drillers. Instead,
Nic Allen crude prices dived to the gain of nobody inside the oil and gas industry. As
publisher@petroleumtechnology.com OPEC now admits, it did not expect prices to fall so far, so fast when it
decided to shore up output.
Circulation However, while fracking may falter at sub-$30 price levels, highly distrib-
Jacki Watts
uted production of LTO in North America can quickly swing back into action
Louise Shaw
circulation@petroleumtechnology.com when the price bounces back. It is a flexibility that is unavailable elsewhere.
When demand begins to outstrip supply and prices do recover, shale is the
Crambeth Allen Publishing Ltd most likely source to fill the gap. With crude exports from the US at last on
Hopesay, Craven Arms SY7 8HD, UK the agenda, that may mean filling a supply gap among some of OPECs
tel +44 844 5888 776 prized European and perhaps Asian customers as well as in local markets.
fax +44 844 5888 667 So when will the upwards bounce come about? The best neutral view is
from the International Energy Agency (IEA), which reckons that production
of US crude, the greater part of which comes from shale measures, will even-
PTQ (Petroleum Technology Quarterly) (ISSN tually rise by 1.3 million b/d by 2021, with a starting point of the beginning
No: 1632-363X, USPS No: 014-781) is published
quarterly plus annual Catalysis edition by Crambeth
of 2016. During the current year, production will tumble by 600 000 b/d, says
Allen Publishing Ltd and is distributed in the US the IEA, which means a great deal of pain for the producers. Output will fall
by SP/Asendia, 17B South Middlesex Avenue,
Monroe NJ 08831. Periodicals postage paid at New by a further 200 000 b/d in 2017, but crude inventories will rise only by a rel-
Brunswick, NJ. Postmaster: send address changes to atively modest 100 000 b/d over the same period. Stocks will then begin to
PTQ (Petroleum Technology Quarterly), 17B South
Middlesex Avenue, Monroe NJ 08831. fall sharply, by 400 000 b/d in 2018, when a rapid upward swing in shale oil
Back numbers available from the Publisher production is set in motion
at $30 per copy inc postage.
Adding to the unique fouling, corrosion and catalyst contamination issues
reported by refiners processing LTOs, the challenges become further compli-
cated due to the heat and energy imbalances occurring when a facility
designed to run on heavy and sour crudes starts processing higher percent-
ages of light and sweet shale crudes and LTOs.
CHRIS CUNNINGHAM
Q Shale oil is low in sulphur but for how long? Should we ensure that the sulphate levels are low and you are not
allow for more desulphurisation capacity for the future? introducing additional sulphates into the reservoir.
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JEFFREY ZURLO
GE Water & Process Technologies
A
s a crude oil importer for
over 30 years, the North A
American renery market 0.25 billion cf/d of shale
focused on heavy gravity, high China
sulphur crude oil processing to take
advantage of the lower purchase
prices and abundant volumes
offered on these crude oils. Over Canada
the last decade, the proliferation of
shale gas and shale oil (also known Non-shale gas Shale gas
as tight oil) production in North United
America has literally changed the States
regions renery landscape seem-
ingly overnight. Shale gas has 0 15 30 45 60 75
reduced the cost of natural gas Volume, billion cf/d
signicantly, and some predict low
B
gas prices will continue through at
least 2020.1 Shale oil has very differ- 0.02 million b/d of tight oil
Argentina
ent characteristics to what was
considered opportunity or price
advantaged crude oils in the past;
this relatively new oil is light in Canada
gravity, low in sulphur, and
contains very little heavy residuum.
Non-tight oil Tight oil
As a result of developing the
production of these raw materials, United
States
the US is on the road to energy
independence, possibly within the
next 5-15 years.2 North American 0 2 4 6 8 10
reneries have signicantly Volume, million b/d
changed operating conditions, are
reconguring their equipment, Figure 1 Shale gas and oil production Source: US Energy Information Administration (2015)
expanding production, and new
facilities are being built specically gas resource in the world, with 11% using the one-two punch of hori-
to handle shale oils. Despite the of the worlds total, and the fourth zontal drilling and hydraulic
recent drop in global oil prices, largest technically recoverable shale fracturing.5 Much of the shale play
shale oil appears to remain an oil resource, with 8% of the worlds resides in the area of the province
important part of the North total.3 In addition, Venezuela has known as Vaca Muerta. The terrain
American renery landscape. the seventh largest technically of this region is fairly at, which
In Latin America, and specically recoverable shale oil resource, with helps optimise well pad placement
Argentina, the conditions are ripe 4% of the worlds total.4 and simplify equipment move-
for a similar shale revolution. In a Geologically, the shale formations ments. The province also has a
2014 study, the US Energy discovered in Argentinas Neuqun relatively low water-stress level
Information Administration ranked province have been deemed an key for the large quantities of water
the country as having the third excellent thickness and pressure for needed to conduct hydraulic frac-
largest technically recoverable shale favourable oil and gas production, turing. Since the Neuqun province
TI
K
gh
en
gh
Sh tin
al
LL
LL
W
e
W
Br
Li
Li
n
ge
ab
S
nn
often required
Ar
Ar
Bo
wt%
50
process heavier feeds will need to
40
blend shale oils with other, heavier,
and likely more asphaltenic crude 30
oils. Since asphaltenes are, by defi- 20
nition, insoluble in paraffinic 10
hydrocarbons, blending shale oils 0
into heavy crudes can often upset
a a
rd
en
i b
a 6/
ke
D ga s
Sh ntin
ed Ara
the natural stability of the
Fo
Ea le
M um
30
O
kk
sr
La
es 1
a
C
Ba
M y
Ba
ge
on
e
d
e
gl
asphaltenes in the blended mixture.
er
ol
Ar
m
M
tro
Another method to show the
Pe
impact a crude oil may have on
blending is to use the Asphaltene Figure 3 Saturates and asphaltenes of various crudes
Phase Separation Index. This is a
measure of a crude oil or blend to
cause an upset in asphaltene stabil- Petromonagas
ity when mixed with other crudes. DCO
As compared to the other bench- Cold Lake
marks shown in Figure 4, it can be Merey 16 /
Mesa 30
seen that the Argentina shale oils
analysed are very high on this Arab Medium
scale, exceeded only by the US Basrah
Eagle Ford shale oil.
Bakken
There are several established and
developing test methods that can Eagle Ford
evaluate an individual crude oil, or Argentina
shale
a blend of two or more crude oils,
for asphaltene stability. The photos Fully stable Unstable
in Figure 5 show the progression
(from left to right) of a compatibil- Figure 4 Asphaltene Stability Index
ity test performed on an
incompatible blend that generates Increased oil content in the tices at the tank farm, chemical
agglomerated asphaltenes. The desalter brine, from oily solids and treatment with stabilisers to avoid
initial mixing of the oils produces a generation of organic solids from precipitation, or applying treat-
homogenous mixture (left photo). precipitated asphaltenes themselves ments at the desalter, hot train,
Over time, asphaltenes start to Higher slop oil generation and and/or waste treatment plant to
agglomerate such that they form a lower recovered oil quality at the overcome the issues related to the
separate detectable phase in the waste treatment plant precipitated asphaltenes.
fluid (middle photo). Finally, signif- Increase in COD in the waste As an illustration, Figure 6 shows
icant agglomeration has occurred treatment influent. brine samples from a US refinery
and asphaltene particulates are The most common methods to that was experiencing asphaltene
forming larger particles (right avoid precipitated asphaltenes compatibility issues. Using a tradi-
photo). include modifying blending prac- tional demulsifier treatment
The effect of precipitated programme at the desalter could
asphaltenes can negatively impact not effectively resolve the issue.
refinery operations in a number of A crude stabiliser treatment
ways, including: programme was added to the refin-
Generating stable emulsions in ery tank farm injecting into the
the desalter, leading to poor crude oils caused the instability
desalter performance and resulted in a consistently clean
Fouling of heat exchange equip- brine and more efficient desalter
ment and furnaces in the crude unit operation.
heat exchanger network down-
stream of the desalter the hot High temperature waxes
train Figure 5 Asphaltene precipitation Another concern with shale oil
Solids
Particulate content in shale oils
varies considerably, relative to
BS&W test Blank Treated conventional crude oil sources. In
2% precipitated 4% paraffins-based 6% water drop without addition, the particle size of the
paraffins emulsion emulsion
solids is often very small, possibly
a result of the hydraulic fracturing
Figure 8 Treating a paraffin based emulsion process. Small particle size solids
900
working to change operating condi- 800
tions at the desalter, as well as 700
modifying the treatment 600
programme with a combination of 500
new demulsifier chemistry and 400
controlling desalter wash water pH, 300
solids removal above the 70% KPI 200
for this plant was achieved (see 100
Figure 11). Additional benefits to 0
implementing this programme 0.45 0.22 0.10 0.05
included increased metals removal Filter pore size, m
and improved flexibility for the
plant to be able to process addi- Figure 10 Filterable solids test using various pads
tional residuum in their fluidised
catalytic cracker.8
100
Crude oil desalting 90
Desalter performance has tradition- 80
ally been measured by salt removal,
70
oil dehydration, and crude tower
Efficiency, %
30
20
Temperature F
10
10
Crude tower operating conditions altered
based on model results
20
30
128 average <5
Corrosion rate, MPY
Figure 12 Crude tower condition assessment, water dew point vs salt point
tank dewatering, slop system systems and reduced use of ammo- As a side note, tramp amine
management, and wash water nia as a primary neutraliser, the contamination can cause difculty
quality. Even the make-up of the industry has witnessed a dramatic in desalter operations and increase
chemistry selected has to be consid- shift from traditional initial conden- nitrogen loading at the waste treat-
ered when accessing the overall sation point (ICP) or dew point ment system, in addition to the
treatment programme. Application corrosion mechanisms to amine salt corrosion issues just outlined.
technology is another variable that corrosion. Corrosive salt formation Reners who are considering
can impact programme perfor- and/or shifts in salt point tempera- processing the lighter shale crudes
mance. So, how and where tures can compromise crude unit or lowering tower top temperatures
chemical treatment is applied is integrity by laying down liquid or have to be aware of the change in
almost as important as the selection solid salt deposits that are difcult monitoring that should occur to
of the chemistry itself. to remove and result in an under- optimise the economic benets
Amine and ammonia removal salt deposit corrosion mechanism. while managing corrosion.
can be improved by reducing the Tramp amines are dened as Fortunately, methods to accurately
pH of the water and thereby driv- measure tramp amines in the ren-
ing more of these compounds into ery more quickly have emerged,
the desalter brine water. There is
The unique challenges and advances in data communica-
tremendous benet associated with associated with tion and handling have enabled
removing amines at the desalter. If more rapid calculation of system
the amines or ammonia do not processing shale oils salt points and potential impacts.
partition into the water, they The following describes how GE
remain in the crude and form can be overcome with assisted a rener in dening a new
amine-hydrochloride salts in the operating envelope in order to limit
crude tower and overhead system. a combination of overhead corrosion and improve
They are especially troublesome the units economic balance. As a
when they form in the top pumpa- baseline and ongoing result of very high corrosion rates
round sections. being measured in the overhead
monitoring system, an investigation was
Corrosion and distillate conducted to determine the root
maximisation any amine compounds not inten- cause and develop measures to
Increasing distillate production tionally introduced to the crude restore system corrosion under
yield is an overall global renery unit distillation tower overhead acceptable limits. First, the relation-
trend. One technique employed system for pH control to prevent ship between the salt point and the
fairly regularly to increase straight- acidic corrosion. Tramp amines water dew point was calculated
run distillate volumes is to lower found in shale oil crudes are using GEs LoSALT ionic equilib-
the crude tower top temperature. predominantly the result of triazine rium overhead model, and the
While yielding higher distillate based H2S scavengers, but can be system condition was plotted over
volumes, this may also increase present from other upstream treat- time (see Figure 12). Each of the
corrosion potential in the crude ments. (Amines do not generally bars in the chart represents temper-
tower and overhead system, nega- exist naturally in crude oil forma- ature differences in degrees
tively impacting reliability and tions.) If this is not properly between the water dew point and
reducing the prot potential of the managed, severe corrosion can the salt point on a given day.
renery. Due to better wash water result from amine salt formation. The purple bars represent meas-
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38M022016H
R
ecent increases in hydraulic
fracturing operations have
produced a significant amount
of condensate liquids, particularly
in the US. Conversion of these light
liquids into finished products for
sale at maximum value is being
considered via new units or expan-
sion of existing facilities. The
quality of many condensates is
such that minimal hydrotreating is
required, but significant upgrading
of the paraffinic naphtha is
required to meet gasoline specifica-
tions. A condensate refinery is Current shale plays
therefore expected to include Prospective shale plays
reforming and isomerisation of Basins
naphtha along with naphtha and
Stacked plays
diesel hydrotreating. In this article, Shallowest/youngest
novel synergised unit flowscheme Mid-depth/mid-age
solutions will be discussed, which Deepest/oldest
consists of three key ideas.
Figure 1 US based oil and gas shale plays1
Idea 1
The goal of the alternate conden- were identified. The energy benefits with reactor section pressure, cata-
sate fractionation unit (CFU) design were not sufficient to overcome the lyst volumes, and redundant
was to reduce equipment count and cost of redundant fractionation fractionation of naphtha. Efficient
save capital and/or to reduce with a combined hydrotreating combinations of shared auxiliary
energy consumption for opex approach. The lowest operating systems and novel combinations
savings, especially when upstream costs were achieved when the were proposed so that each unit
of combined naphtha and diesel hydrotreating units are individually could be individually optimised.
hydrotreating (CHT). Typically optimised and a three-column CFU
naphtha and diesel are rigorously design is employed, while alternate Idea 3
separated in the CFU, but they approaches may provide modest UOP explored novel solutions for
would need to be combined and capital cost benefits. using isomerisation with the UOP
then re-separated for a CHT unit Platforming process to determine
approach, resulting in redundant Idea 2 an economic optimum configura-
fractionation. Innovative designs The goal of the combined hydro- tion for gasoline production in the
were considered to overcome the treating design was to minimise proposed design. A number of
penalty of redundant fractionation. equipment count and thereby opti- options and synergies were evalu-
Options to either eliminate a mise the refinery economics. In the ated to reduce capital costs and
column or to adjust the column final analysis, the combination of operating costs. Significant capital
operating conditions and draws naphtha and diesel in a single cost savings were achieved using
were considered. Energy benefits hydrotreating unit was found to innovative naphtha complex
were found by optimisation of the have limited economic justification. schemes relative to the base case
columns, and capital cost savings Cost penalties were associated separated unit configuration. A
Naphtha
Condensate to splitter
Naphtha Naphtha Combined
fractionator 1 hydrotreating Distillate hydrotreating
Fractionator
Condensate
Distillate
hydrotreating
2
Diesel
Distillate Proposed reduced equipment product
fractionator Diesel hydrotreating configuration
product
Stripping steam
Traditional hydrotreating
Commercialised Atmospheric
configuration residue
LPG, gasoline (or blending compo- split between process streams. For the first schematic of Figure 4,
nent) with an octane target of 87, a CHT approach, rigorous separa- issues quickly became apparent.
ultra-low sulphur diesel, and a low tion of naphtha from diesel is not While the crude unit is typically a
sulphur residue (for refinery FCC required and overall economics single column, the overhead gas
or hydrocracking feedstock or fuel would be penalised by the redun- (LPG at low pressure) is typically
oil). dant fractionation illustrated in compressed and then processed in
Figure 3. a gas concentration unit. This
Ideas for condensate processing The first question posed when requires a high capital off-gas
For the base case of the study, a reviewing the CFU for the compressor. Higher crude column
small hydroskimming style conden- Condensate Refinery was: Can we pressure can be used to keep the
sate refinery was proposed (see use just one column like a typical overhead as totally condensing, but
Figure 2). The objective of the study there are constraints on the column,
was to analyse opportunities that
might optimise the overall complex.
Processing condensate whereby fouling is expected at the
bottom of the column when high
The original premise of the study LPG in a CHT unit pressure leads to bottoms tempera-
was that reduction of equipment tures above about 725F (385C),
count and minimisation of capital carries a significant and higher pressure is less efficient
would be the most important objec- for diesel fractionation from resi-
tive. Three parts of the study will economic penalty due. The study did show that use
be summarised: of steam stripping and adjustments
Idea 1. Efficient CFU design with no product to the column pressure could
Idea 2. Combined hydrotreating handle a higher LPG and lower
design
quality benefit residue feedstock. Sufficient naph-
Idea 3. Innovative naphtha complex tha in the overheads of the column
schemes. Crude unit? Various options were keeps the LPG as liquid at moder-
then explored with a target of opti- ate pressure (<50 psig), but then a
Idea 1: efficient condensate mising the design for expected use second higher pressure (>120 psig)
CFU design of downstream combined hydro- stabiliser column is required to
An early assumption in the project treating (CHT, discussed below) separate the LPG product.
was that equipment count and and to minimise capital and/or Processing condensate LPG in a
capital could be minimised by operating costs in general. The CHT unit carries a significant
combining the naphtha and diesel questions then became: economic penalty with no product
hydrotreating units into a CHT 1. What is the best condensate frac- quality benefit. Surprisingly, the
unit. For commercial designs where tionation unit (CFU) configuration? energy input requirements
traditional separate hydrotreating is 2. Can costs be reduced if combined remained high for this crude
employed, the CFU has been hydrotreating is used? column approach even when rigor-
designed with a three-column Upon further examination of the ous separation of naphtha and
approach that achieves a rigorous crude column approach shown in distillate range streams was not
LPG 3 Stabiliser
Naphtha
3
Crude column
Naphtha
1 Stabiliser
Distillate
Condensate
Stripping steam
Atmospheric
residue
B C
LPG
LPG
Light naphtha 3 Stabiliser
LPG
Condensate Condensate
splitter Light stabiliser
naphtha
1 1
Condensate Condensate
Light and
Heavy heavy
naphtha naphtha
2 Fractionator 2 Fractionator
Heavy Heavy
distillate distillate
Stripping steam Stripping steam
Atmospheric Atmospheric
residue residue
required. The heat exchanger sures, product draws, minimisation energy input and capital reduction.
network was more constrained, so of reux rates, and optimised heat One key capital reduction method-
capital savings were not exchanger networks. Higher pres- ology proposed is to use a hot oil
substantial. sures where LPG is processed along system, which minimises the
The three-column CFU design with naphtha avoids the use of number and size of the high cost
approach (see Figure 3) avoids the compression, while adjustments to red heaters in the entire conden-
use of an overhead compressor. A draw rates and locations shifted the sate renery complex. Similarly, the
separate distillate fractionator compositions to avoid high temper- use of a steam system can allow for
column allowed for higher pressure ature fouling. Product draws and stripping, which improves product
in the rst column and lower pres- locations along with a diesel pump- recovery and may reduce or elimi-
sure in the second heavy oil column around are also used to optimise nate heater services. These are parts
to effectively avoid fouling. the process heat exchanger of an overall complex outside
However, capital cost and operat- network. Lower pressure distillate battery limits (OSBL) optimisation,
ing costs were high to meet on-spec fractionation with steam stripping and the adjustment of draw rates
product cuts with rigorous separa- maximises recovery while minimis- and locations in the CFU allowed
tion that was not optimised for a ing the energy requirement. use of hot oil exchangers rather
downstream CHT. Minimisation of reux rates shrinks than red heaters in the alternate
Two alternative congurations the columns and energy, but this congurations.
with relaxation of design targets for approach is only applicable for a A summary of the CFU column
the product cuts were then devel- downstream CHT where rigorous analysis is shown in Table 2. It is
oped, shown in the second two splits are not required as naphtha interesting to note that optimisation
schematics in Figure 4. The congu- and distillates are co-processed. within the CFU leads to lower
ration optimisation study included Optimisation of the conguration temperature naphtha and distillate,
adjustment of the column pres- did result in minimisation of which would require more energy
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Careful monitoring for preheat exchanger fouling and H2S release during
unloading is vital when tight oil blends are processed
TIM OLSEN
Emerson Process Management
T
he rening industry has Crude variability challenges API gravity from the same source,
changed over the past few The main challenges with process- and catalyst performance related to
years with an ample supply ing opportunity crudes include: cold ow properties.
of opportunity crude oils available. crude blending to match the ren- Heat exchanger fouling is one of
Opportunity crudes have been ers conguration and processing the biggest challenges in renery
around for many years, but only capabilities, crude switch distur- operations. Many reners still use a
until recently has the abundance of bances, fouling and accelerated spreadsheet with monthly calcula-
these discounted crudes changed fouling from incompatible crude tions, typically based on incomplete
the behaviour of reners to shift blends, corrosion, and energy data, to evaluate heat exchanger
away from their usual feedstocks. balancing across the crude unit condition, with manual checks on
Tight oil, sometimes referred to as individual bundles just prior to a
light tight oil or LTO, is also an Having a more turnaround to determine if cleaning
opportunity crude oil from shales or is required. The traditional
other low permeability formations. consistent feed to approach to monitor heat
Although most of the news about exchanger fouling through spread-
tight oil production is in the United the crude unit allows sheets with manual entry of
States, tight oil is not unique to this temperatures and pressures was
region and is found throughout the
for the opportunity usually sufcient before the
world; see Figure 1 with the map of to optimise operation increase in crude blending from
basins with assessed shale oil and opportunity crudes such as tight
shale gas formations, as of oil. However, some crude oil
September 2015 (US Energy preheat exchangers. In addition to blends are not compatible, leading
Information Administration, EIA). the above mentioned issues, light to unanticipated accelerated
Production from tight oil formations tight oils also have challenges typi- fouling.
requires the same hydraulic fractur- cally related to H2S (treated with Because tight oils tend to be
ing and often uses the same amine-based H2S scavengers), lighter, they need to be blended
horizontal well technology employed parafn waxes, signicant quanti- with other crude oils to get the
in the production of shale gas. ties of lterable solids, variability in right balance for best utilisation of
existing downstream units. Having
a more consistent feed to the crude
unit also allows for the opportunity
to optimise operation. If light tight
oil feeds are not blended, the
lighter oil can bottleneck the crude
overhead and downstream naphtha
processing units, and limit produc-
tion for bottom of the barrel
processing. Some reners are
blending more than two crudes to
get the right balance of feed quali-
ties, which creates unknown issues
With resource estimate
with crude incompatibilities. When
Without resource estimate crudes are incompatible, acceler-
ated fouling occurs in the crude
Figure 1 World shale resource assessments, US Energy Information Administration, unit preheat exchanger train due
24 September 2015 to asphaltene precipitation.
L
ight tight oil (LTO, also known crude swaps, thereby sending LTO LTO crudes is relatively new,
as shale oil) formations are into reneries in Mexico. Other whereas Asia Pacic conventional
providing a new crude source countries in the region are also crudes that have similar qualities
to North America and soon to the examining the potentials of LTO (when compared to LTO crudes)
world, with the construction of imports. The economic advantages have been in production and
condensate splitters in the US Gulf of processing LTO crudes are the rened for many years. In addition,
Coast and the announcement that low crude cost relative to world West African crudes and conven-
the US government was lifting the benchmark crudes and higher qual- tional US crudes (such as West
crude export ban. Agreements ity compared to other available Texas Intermediate, WTI) have
between the US and Mexico have crudes. been displaced from US reners
been announced that will allow The production and processing of and replaced with LTO crudes.
Virgin naphtha
Catalytic
NHT reforming Reformate
unit
Waxy fouling Gasoline
Wild naphtha Problems with pool
Kerosene cold flow properties
Crude Kerosene DHT
tower
HT jet Oil
Waxy fouling Middle distillate Naphtha Naphtha movement
HT and
Crude
diesel storage
Diesel
Atmospheric
gas oils DHT Jet and
Crude GOHT diesel pool
Synthetic jet/diesel
feedstock or CHU
Cutter stock for fuel oil
Vacuum
overheads
Low utilisation
Vacuum
FCCU
gas oils FCC
naphtha
Low yields Vacuum
tower
Coker FCC
gas oils C3S and C4S Alkylate
Wild naphtha
Atmospheric
Coker
resid Alkylation
C3S and C4S
Vacuum
Coker
Coke
resid High olefins
Low rate
saturation and conversion via pressure separator hydrogen-rich ing heat release and temperature
hydrotreating. The hydrotreater off-gas can be used in a once rise are lower, thereby reducing the
operation is severe and requires through mode (naphtha hydrotreat- need for hydrogen quench. The low
high temperature and pressure ing units) basis or recycled with a heat release reduces the feed/efu-
operations, with shorter run lengths compressor (kerosene and light ent heat recovery and increases
than similar downstream renery diesel units). The recycle gas is duty requirements on the feed
processes. 7,8,12,18 typically treated to remove H2S in heater, as well as impacting reactor
When examining LTO processing, this conguration in ultra-low quench control. Hence, these
the initial belief was that the exist- sulphur service, but some congu- systems will require review as part
ing unit can likely handle this rations do not amine treat the of processing LTO feeds within
feedstock. However, the parafnic recycle gas. these units to avoid operating
nature of LTO presents a different More severe feedstocks require a outside of design conditions or reli-
challenge, as the severity require- more complicated reactor and recy- able equipment capabilities.
ment is low yet must be high cle gas system. A multi-bed reactor
enough to remove the required with three separator hydrotreater Catalyst systems
sulphur. This feedstock provides an conguration and recycle gas treat- The kerosene catalyst systems focus
opportunity for reners to modify ing is shown in Figure 3. on stabilising product colour, meet-
catalyst selection, feed rate, hydro- The reactor shown in Figure 3 ing sulphur specication (if one
gen partial pressure (ppH2), and includes a hydrogen quench to exists), and removal of potential
operating temperature to maximise control the reactor temperature rise, contaminants such as arsenic and
utilisation of a given hydroprocess- which is caused by signicant silicon in the top portion of the
ing asset. hydrogen consumption, and an catalyst load. The low hydrogen
amine treater on the recycle gas to consumption and deactivation rate
Fixed bed hydrotreating remove H2S. This conguration also allow for long cycle length and a
configuration includes a water wash to remove low activity catalyst is successful in
Two typical hydrotreating congu- the ammonia bisulphide from the this application. The kerosene cata-
rations are utilised for hydrotreating reactor efuent air cooler (REAC). lyst system might include a
distillate range material. The typical When processing LTO feeds in consideration for a dewaxing
single stage separator conguration these more complicated reactor component to improve cold ow
is shown in Figure 2. systems, the operating conditions properties.
The single reactor and single will change. The LTO feeds have The diesel catalyst system can also
separator hydrotreater design (see low aromatics, sulphur and nitro- have a relatively low hydrotreating
Figure 2) is typical for a kerosene gen, and hydrogen consumption is activity but needs sufcient activity
and light diesel feedstock. The high typically low. Therefore, the result- to meet sulphur and cetane
Property WTI Bakken Eagle Ford Bach Ho Cossack Gippsland Kutubu Qua Iboe
Sulphur, ppmw 8 8 <1 <1 3 <1 8 8
LHSV, hr-1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
WABT1, F Base 1 -23 Minimum WABT Minimum WABT Minimum WABT Minimum WABT -10 3
Total delta T1, F Base 1 -7 -33 -49 -8 -19 20 24
Chemical H2 consumption1, scf/bbl FF Base 1 -56 -164 -227 -62 -105 69 101
Delta API (bottoms feed)1 Base 1 -0.4 -1.9 -2.9 -0.4 -1.1 1.2 1.5
Delta cetane (bottoms feed)1 Base 1 -0.4 -3.7 -6.6 -0.3 -2.0 2.8 3.2
Cycle length1, years Base 1 2.6 2.7 2.6 3.0 2.8 1.0 0.0
Table 5
Iso-paraffin
Heat of fusion
ion
usf
of
at
He
Cyclo-paraffin
(Naphthene)
Temperature
tion in feed rate (or other production. Straight chain paraffin utilise. Often, it is used by default,
mechanisms) to maintain overall properties are prone to wax as most refiners are limited in the
cycle length, which is expected production, thereby creating floccu- amount of jet or kerosene that can
given the difficulty of treating these lation observed as high cloud be sold as a standalone product.
streams points and, as they crystallise, high Therefore, many refiners naturally
By utilising LTO feeds, the unit pour points. This phenomenon is blend kerosene range material into
can increase throughput and/or shown in Figure 4. the diesel pool. Of course, with
increase cracked stock processing Several mechanisms exist to ULSD specifications, the kerosene
while maintaining constant cycle manage these properties and meet must be highly hydrotreated, either
length final blending requirements. These within a dedicated hydrotreater or
If the unit is hydrogen consump- include: as part of the diesel hydrotreated
tion limited, additional capacity Kerosene blending feed mix. Software like KBCs
may be available to increase Pour point depressants Petro-SIM tool can be used to
cracked stock percentage, though Catalytic dewaxing. understand the blending impacts
cycle length may be impacted For most refiners, a combination on cold properties for various
In comparing Asian light sweet of the first two options is the most crude blends.
diesel versus LTO diesel, the unit typical. However, many refiners are
performance is similar on a relative now looking to utilise the final Pour point depressants
basis, but each crude will have a option, given the high percentage Cold flow depressant (CFD) addi-
distinct impact on unit performance of paraffinic and waxy crudes they tive chemistry involves blending
that should be analysed. are processing. A fourth option of polymers with distillate, such that
Using a tool like DHTR-SIM can reducing back-end cut point also the initial wax formation is modified
assist the refiner in understanding exists, but the economics for from large to small wax crystals and
the reactor performance and prod- reduced diesel recovery normally inhibits agglomeration. Wax forma-
uct quality impacts of processing does not make this option attractive tion starts with a nucleation point
LTO crudes at their facility. in distillate-centric markets. for small crystals to collect (cloud
point). As the crystal grows, the
Cold property management Kerosene blending larger crystals combine or agglomer-
As the tables show, LTO distillates This option is one of the easiest to ate into larger collected masses until
have poor cold properties, which is
common in Asia Pacific light sweet Pour point depressant performance
crudes. Though hydrotreating
impacts cetane and sulphur, this
Depressant type IFP, TPE 101 Chem Link P 7599 or 7590
process does not appreciably
Treatment concentration, wppm 500 3,000 500
change the cold flow properties. Distillate from crude type Bombay High Bach Ho Bach Ho
The high straight chain paraffinic Pour point reduction, Delta T, F 18 6 12
concentration and yields make
these crudes good for diesel Table 7
www.hoerbiger.com
Opportunity or Annoyance?
Price differentials between conventional and opportu- Over the course of 20 years, Process Consulting Ser-
nity crudes compel refiners to process increasing per- vices has completed more than 130 revamp and grass-
centages of lower valued opportunity crude. However, roots designs supported by over 75 detailed test runs.
as many refiners have learned the hard way, opportu- An extensive collection of test run equipment perfor-
nity crudes are tied to unique processing challenges. mance data and feed/product analyses enables confi-
Furthermore, existing crude unit configurations may dent prediction of real-world opportunity crude perfor-
limit high-profit opportunity crude to a disappointingly mance. PCS has enabled refiners worldwide to extend
small proportion of the total unit blend. crude unit run lengths from months to years while im-
proving yields and operability.
LEE FAGG
Nexant
N
exant has recently completed Additionally, due to growing envi-
a detailed analysis of the Renewables ronmental concerns such as air
current and developing 2% quality and global warming, there
status of Chinas shale gas sector. Oil is a greater push to enact policies
The report has been tailored to 18% that diversify the energy mix in
explore potential opportunities and Nuclear favour of cleaner burning fuels.
implications for downstream petro- 1% Within this aspect of the energy
chemicals particularly associated Natural gas sector, natural gas is forecast to
5%
with ethane. To date, the shale gas become an increasingly important
sector in China is in its infancy and, Hydro component of the overall energy
7%
as a result, there is relatively mix. However, China only has
limited data available in the public Coal modest reserves of conventional
67%
domain. This is especially true gas and therefore unconventional
when compared to published infor- gas reserves are being actively
mation sources associated with the Figure 1 China energy consumption 2013 targeted to meet the countrys
shale gas sector in North America. energy objectives. Within this
The North American shale industry China today is relatively small context, the countrys shale gas
is well established and in most compared to other energy sources potential is therefore highly signifi-
cases shale resources have been and accounts for approximately cant on two fronts:
mapped in great detail. In compari- 5% of total domestic energy First and foremost, the potential
son, Chinas shale industry is still consumption. presence of large quantities of
very much in the early exploration Future sources of energy supply indigenous gas could significantly
phase, with information tightly in China are forecast to change boost the fuels share of the
held amongst a few organisations over time as the government primary energy mix, assuming the
directly involved in oil and gas continues to drive increased gas can be extracted and trans-
exploration. self-sufficiency through the promo- ported economically.
China is the worlds most popu- tion of wider energy diversification. Secondly, shale gas production
lous country and one of the leading
consumers of global energy. The
domestic economy has grown 35
rapidly over the past 20 years,
30
creating both a surge in demand
Reserves, trillion m3
ria
pe
lia
ia
Ve azil
a
.S
in
ad
el
ss
ra
hi
ge
ro
zu
nt
Br
an
Ru
C
st
Eu
ge
Al
ne
Au
C
2%
60 Junggar
20% 3%
50
Jianghan
40 15% 3%
Tarim
30 19%
10%
Sichuan
20 56%
5% Total reserves 31.6 trillion m3
10
200
the shale gas development plan
(2011-2015). However, in 2014 all
shale gas production targets were 150
revised down as initial progress in
the sector was slower than 100
expected. Previously, the govern-
ment had set a target of around 60
50
billion cu m by 2020, but this
number has now been revised
down to 30 billion cu m. Based on 0
reported progress, this production 2015 2020 2030
appears to be realistic. However,
there are concerns that reported Figure 5 Shale gas production targets
shale gas production numbers may
also incorporate some conventional
gas production. 160 200
Longer term shale gas produc- Based on 2% ethane content
140 180
tion targets have also been reduced Total production
Shale gas production,
160
Ethane production,
marginally and are now forecast at 120 Total ethane production from shale gas
120 140
thousand b/d
100 120
However, Nexant notes that
production levels are forecast to 80 100
accelerate greatly post-2020 due to 60 80
the completion of key infrastruc- 60
ture projects, greater economies of 40
40
scale, reduced drilling costs, and 20 20
improvements in fracking
0 0
technologies.
14
16
18
20
22
24
26
28
30
20
20
20
20
20
20
20
20
Operating rate, %
in Subei and Jianghan. Based on the
40
analysis, Nexant has concluded at
60
this stage that these fields will not
30
produce shale gas before 2030.
40
20
Potential for ethylene
10 20 China consumes over 20 million
t/y of ethylene and is the largest
0 0 market for ethylene in the Asia
2015 2017 2019 2021 2023 2025 2027 2029 Pacific region, accounting for more
than one-third of regional demand.
Figure 7 China polyethylene supply/demand and net trade Polyethylene accounted for about
65% of total ethylene consumption
A in China, with new HDPE and
200
LLDPE capacity driving consump-
180 Approximately 182 000 b/d of ethane tion growth. Furthermore, China
Production, thousand b/d
3000 Approximately 3 million t/yr of ethane based consume a mixture of naphtha and
ethylene production is feasible based on heavy gasoil, also known as hydro-
2500 theoretical ethane production during 2015-2030
wax. The hydrowax is residue from
2000 refinery hydrocrackers, which are
Theoretical ethylene production
prevalent in the recent generation
1500 Theoretical ethylene availability
of Asian oil refineries mainly fed
1000
with heavy Middle Eastern crudes.
As refinery development has
500 slowed, the focus has shifted to
largely coal based methanol-to-ole-
0
2014 2016 2018 2020 2020 2024 2026 2028 2030
fin (MTO) developments. Currently,
conventional ethylene production
via steam cracking accounts for
Figure 8 Overview of theoretical ethane and ethylene production via ethane (base case approximately 83% of domestic
shale gas production, 2% ethane content) ethylene capacity. However, by
2030 close to half of domestic ethyl-
theoretical ethane content of Current production estimates are ene capacity will result from
Chinas shale gas production conservative and focused in the methanol conversion.
ranges from 123-91 000 b/d, 2030 Sichuan Basin only. Currently, there is no ethylene
basis. The analysis presented is on Discovery and production of production from ethane in China.
the conservative side. However, higher ethane gas within the This is due to limited availability of
potentially theoretical ethane avail- Sichuan Basin. Initial exploration domestic ethane. However, this
ability could be higher due to the has resulted in relatively dry gas situation may change longer term if
following: being produced. However, Nexant theoretical ethane availability from
Higher than expected shale gas notes that only a relatively small shale gas is realised and recovered.
production over the longer term. area of the basin has been analysed Figure 8 provides an overview of
10th
REFINING
Additional ethane availability
increases year on year in line with
shale gas production
Regent Hotel
In 2020, theoretical ethane availa- Beijing
CHINA
bility will be sufficient to produce
around 600 000 t/y of ethylene 13-14
In 2030, theoretical ethane availa-
bility will be sufficient to produce Steam cracker naphtha/gasoil Aprilconversion
Methanol
46%
2016
85%
around 3 million tonnes of ethyl- Steam cracker naphtha
ene. This will PTQrequire
's international
around conference for China 9%
182 000 b/d of ethane (see Figure 9). held in association with SINOPEC Steam cracker naphtha/gasoil
37%
Ethylene production from ethane
assumes that all theoretical ethane Total capacity 2014 = 19.6 million tons Total capacity 2030 = 50.6 million tons
is recovered.
Significant ethylene production, at Figure 9 Chinas ethylene capacity
approximately 8 million tons per
annum, from ethane may be feasible scenario with 4% ethane content. limited to mixed feed cracking until
if total shale production is in line Speculative ethylene capacity enough ethane supply is available.
with the high case scenario with an additions are not forecast to materi- By 2030, potentially 2 million
average ethane content of 4% alise until post-2020. Furthermore, tonnes of additional ethylene
assumed. This will require approxi- the amount of theoretical ethane production capacity could be based
mately 490 000 b/d of ethane available initially will be relatively on theoretical ethane. Nexant has
production to be realised. Figure 10 small until shale production incorporated some speculative
provides an overview of ethane volumes are ramped up post-2020. ethylene capacity based on theoreti-
potential and ethylene production Therefore, initial opportunities for cal ethane to illustrate the potential
based on the high case shale gas ethane www.Refi consumption would be
ningChina.com impact of shale gas on the domestic
4th
REFINING Lalit Hotel
New Delhi
INDIA 19-20
September 2016
www.refiningindia.com
Spec cap, %
15 Although new MTO plants are
40
expected to relieve the tightness of
35 10
domestic ethylene supply in China,
demand will still be partly met by
30 imports, which are encouraged by
5 the Chinese government. From
25
2015, import duty for ethylene has
20 0 been reduced to 1% from 2%
2015 2017 2019 2021 2023 2025 2027 2029 in China.
China is a major importer of
Figure 10 China ethylene capacity development polyethylene and other ethylene
derivative such as styrene and
ethylene market. However, it South Korea, Japan and Taiwan. ethylene glycol. Despite a recent
should be noted that the forecast The recent excess of ethylene in wave of new ethylene capacity
assumes the following: Western Europe led to imports coming on-stream, China will still
Base case shale gas production remain highly dependent on
targets are met Speculative ethylene polyethylene imports. In 2025
Assumed theoretical ethane we forecast total polyethylene
content averages 2% or higher capacity additions imports at around 20 million
Theoretical ethane is extracted t/y. This is equivalent to around
and consolidated. are not forecast to 44% of total domestic demand.
China has been a big net importer China has a clear incentive to add
of ethylene for the past eight years materialise until additional ethylene capacity.
due to the fast development of However, the rate at which naph-
ethylene derivatives capacity.
post-2020 tha cracking can develop is
However, imports were down by hindered by domestic refinery
around 200 000 tonnes in 2014. Due from new ethylene exporters such capacity development. Therefore a
to the high cost of ethylene ship- as Belgium, the Netherlands and considerable amount of olefins
ping, most imports are from nearby Sweden, and other regions such as capacity will come from coal based
exporters in East Asia such as Turkey and Mexico. Japans exports projects or MTO.
Ethane based ethylene projects
may be feasible longer term.
However, as highlighted in
Middle East Western Europe Africa
Nexants report, a critical mass of
North America Central Europe Asia Pacific
ethane will need to be available to
South America
2000
warrant economic extraction. Based
on current shale gas production
forecasts, this situation will not be
Trade, thousand tons
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