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processing

2016

shale feedstocks

PTQ supplement
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Processing shale
feedstocks
2016
www.eptq.com 3 Pain then gain
Chris Cunningham

4 shale q&a

7 Latin American shale oil: promise or pipedream?


Jeffrey Zurlo
GE Water & Process Technologies

15 Novel processing ideas for a condensate refinery


Donald Eizenga, David Shecterle and Frank Zhu
UOP, a Honeywell Company

22 Monitoring against process problems


Tim Olsen
Emerson Process Management

25 Impact of light tight oils on distillate hydrotreater operation


Robert Ohmes and Matt Lehr
KBC Advanced Technologies

35 Chinas shale gas


Lee Fagg
Nexant

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
electronic, mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner.
The opinions and views expressed by the authors in this publication are not necessarily those of the editor or publisher and while every
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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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

Processing Shale Feedstocks 2016 3


shale q&a

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.

A Tim Olsen, Refining Consultant, Emerson Process


Management Q The more paraffinic nature of LTO means we are
The main question is what form the sulphur is in, and encountering excessive fouling in our preheat exchangers
it is hydrogen sulphide (H2S). Amine based H2S scaven- and in pipelines from the tank farm. Do you have solutions to
gers are added prior to transporting the tight oil. either or both of these issues?
Although amine based H2S scavengers are added,
crude from North Dakota Bakken can be loaded in the A Xiomara Price, Center of Excellence Leader Fouling
cold of winter and have safe conditions, and then trans- Control, GE Water & Process Technologies
ported via railcar to a warmer climate. The mixing of Light tight oil (LTO) has brought about a new challenge
the railcar during movement along with a change in with line plugging issues for some refiners. The plug-
temperature can result in higher vapour pressure and ging of the transfer lines from the tank farm can be
the release of entrained H2S, making the offloading a addressed by a treatment programme that preconditions
potential safety hazard. The more appropriate question the wax crystals in such a way that it inhibits growth
is why are they not stripping off the H2S in the field and provides great dispersant qualities. Additionally,
prior to transporting. For refiners using tight oil, the processing of LTO crude has generated an increase
Emerson recommends H2S monitoring in the tank farm. in cold preheat fouling attributed to paraffinic waxes,
Prior to the shale oil boom, refiners in the US lowering the desalter operating temperature. This type
invested significantly to upgrade their refineries to of fouling cannot be mitigated by adding water in front
handle heavy sour crude oil from Canada and of the cold preheat exchangers as is often done for other
Venezuela. In addition, Tier 3 regulations take effect cold preheat fouling issues. Chemistries like those in
in 2017 for larger refiners and have resulted in addi- GEs Thermoflo product line can be used to mitigate the
tional hydrodesulphurisation capacity to reduce cold preheat fouling without negatively impacting the
sulphur in gasoline from 30 ppm to 10 ppm. Smaller desalter. Furthermore, the hot preheat exchangers are
refiners will need to comply by 2020. Conversations experiencing fouling due to incompatibility between the
about desulphurisation have been around Tier 3, not LTO and other crudes.
the possibility of tight oil increasing in sulphur
content. A Tim Olsen, Refining Consultant, Emerson Process
Management
Because tight oils tend to be lighter, they need to be
The sulphur levels in shale oils blended with medium or heavy crude oils to get the
right balance for best utilisation of existing down-
should not increase unless high stream unit capabilities. In addition, tight oils tend to
have a large percentage of naphtha, which is meaning-
sulphate waters are injected into ful when blending with other crude oils. Asphaltenes
do not dissolve in crude oil but exist as a colloidal
the reservoir during fracs or refracs suspension and will precipitate in the presence of light
paraffinic compounds such as pentane. Mixing stable
A Sam Toscano, Senior Product Manager, GE Water & crude blends and asphaltic and paraffinic oil creates
Process Technologies the potential for precipitating the unstable asphaltenes
The sulphur levels in shale oils should not increase by reducing the solvency capability of the base crude.
unless high sulphate waters are injected into the reser- Therefore, tight oils have more naphtha content and
voir during fracs or refracs. Many of the Eagleford create favourable conditions for asphaltenes to precipi-
locations have high natural H2S levels, so the oil and tate out more readily. It should also be noted that the
gas produced typically requires removal or treatment percentage of crude blends will have an impact on
prior to going into sales lines. Also, some reservoirs crude incompatibilities. For example, an 80-20 blend
have sulphate reducing bacteria present, which convert with 20% tight oil may not be enough to see acceler-
the sulphate in water to sulphides. ated fouling, whereas a 70-30 blend may be unstable
The best solution is to assess water used in fracs to and have additional unwanted fouling.

Additional Q&A can be found at www.eptq.com/QandA

4 Processing Shale Feedstocks 2016 www.eptq.com


Emerson has been equipping additional wireless proppant to hold open the fractures. In certain situa-
temperature and pressure sensors around both sides tions, these solids can stabilise emulsions (Pickering
of heat exchanger bundles along with predictive emulsions).
analytic software. The combination of process data Shale oil desalting is usually accomplished with a
and analytics enables the ability to trend the rate of demulsifier, crude stabiliser and solids wetting agent.
fouling, alert of accelerated fouling, and determine On-site testing is conducted to optimise dosage rates
which bundle requires cleaning. When accelerated of each product for the most cost-effective desalter
fouling is detected, the refiner can adjust the blend performance.
percentage (if possible) and learn that particular
crude blend is incompatible, and thus avoid that
mixture combination in the future. With the increased Q It seems that there is increased risk of naphthenic
use of discounted opportunity crude oils, operations corrosion in the crude unit with an LTO feed? How does it
are providing more insight to production planners on occur and what measures should we take to avoid it?
which crude oils are not favourable within their
refinery. A Collin Cross, Center of Excellence Leader Refinery
Corrosion, GE Water & Process Technologies
We do not really see any predominant trend towards
Q What are the cold flow issues to watch out for in diesel increased naphthenic acid correlated with the
make starting from LTO and how do we overcome them? increase in LTO processing. Likely, we see more of the
opposite. However, the mechanisms for naphthenic
A Ron Gropp, Center of Excellence Leader Fuel Additives, acid corrosion remain the same. Heavy carboxylic
GE Water & Process Technologies acid species native to the crude, and produced in situ
I do not know of significant cold flow issues in diesel via the furnace, are introduced in the tower feed then
make starting from LTO. The paraffinic nature of interact with passivation mechanisms for native
crudes produced from shale plays like Eagleford sulphur species. Second order blending interactions
results in more paraffinic diesels, and in some cases with additional crudes blended into the LTO
related higher cloud points, cold filter plugging points
and cloud points, but treating the fuels with our cold We do not really see any
flow improver additives to meet pour point, cold filter
plugging point, and cloud point specifications has predominant trend towards
proved to be very effective.
increased naphthenic acid
Q How do we counter the formation of emulsions in the correlated with the increase in
desalter?
light tight oil processing
A Tim Olsen, Refining Consultant, Emerson Process
Management feed could synergistically increase or decrease base-
Most refiners are challenged with significant filterable line naphthenic acid corrosion rates based upon
solids (~200 lbs per thousand bbl) and paraffin waxes well-known mechanisms for second order blending
that accompany tight oil crudes. Chemicals are added effects and their potentiation of naphthenic acid
to treat the waxes and wetting agents applied to help corrosion. In our experience, we do not really see
solids exit with the desalter brine. Although refiners such impacts consistently across our customer base,
are trying to filter the solids at the refinery entrance, it but maintain certain cases could be possible in
would be nice to remove the solids and paraffin waxes selected conditions.
prior to leaving the field, similar to removing H2S.
A Tim Olsen, Refining Consultant, Emerson Process
A Mike Dion, Center of Excellence Leader Process Management
Separations, GE Water & Process Technologies Many refiners are seeing naphthenic acid because of
Many factors can influence emulsion stability. For the selection of opportunity crudes that are abundantly
shale oils, two predominant factors are crude blend available in todays competitive and over-supplied
instability and solids. Instability occurs when a resul- market. In addition, many refiners are blending more
tant blend of crudes is deficient in resin and aromatic than two crude oils in order to get the right match for
fractions relative to quantity of asphaltenes. When this their processing configuration. There are definitely
occurs, the crude blend is unstable and precipitation of challenges when using discounted opportunity crudes
asphaltenes and other high molecular weight aliphat- to get the right match. For Emerson, we are seeing
ics may occur. This precipitation can result in refiners investing in non-intrusive corrosion monitor-
asphaltene stabilised emulsions. ing solutions along with continuing their traditional
Shale oils can also contain a high amount of solids coupon or probe approach. Both methods provide
from either hydraulic fracturing of the reservoir, or valuable insight into corrosion issues prior to integrity
sand, which is injected downhole to be used as a issues.

www.eptq.com Processing Shale feedstocks 2016 5


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Latin American shale oil:
promise or pipedream?
The challenges faced by Latin American refiners in processing fast emerging
sources of shale oil in a low price environment

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

www.eptq.com Processing Shale Feedstocks 2016 7


main approaches to processing
Light ends Naphtha Distillates
additional shale oil crudes success-
Gas oils Residuum
fully can be described in a few
100%
points. Those approaches include:
90%
Enabling better blending strate-
80% gies to identify and respond to
70% compatibility issues
60% Defining new operating enve-
50%
lopes for unit operations and
challenging the markets to test
40%
production volume changes
30% Adopting different treatment
20% approaches from tank farms to
10% waste treatment since the tradi-
0 tional chemical treatment approach
does not always work with this
al a

TI

K
gh

en

gh
Sh tin

al

LL

LL
W
e

new crude, so a paradigm shift is


Sh

W
Br
Li

Li
n
ge

ab
S

nn

often required
Ar

Ar
Bo

Identifying capital expenditures


Figure 2 Distillation cuts of various crude oils needed to remove the bottlenecks
of bringing shale oils into the refin-
already has significant conventional tunity crude oils. Normal refinery ery crude oil diet.
hydrocarbon production, there is operations can be difficult to main-
an established gathering and trans- tain in the face of todays refining Blending and compatibility
portation infrastructure in place, environment of increasing crude oil Figure 2 highlights the distillation
which gives this region an advan- variability combined with the cuts of several types of crude oil:
tage over what the North American blending of shale oils into the Argentina shale oil, the US shale
shale plays had at the start of standard crude slate. Processing oils, and several conventional crude
ramping up shale production. these potentially problematic oils. For the shale oils (two left
Argentina is one of only four blends can have a significant nega- bars), note that residuum produc-
countries in the world so far to tive impact on overall profitability, tion is low, compared to high
produce commercial quantities of affecting product quality, unit relia- volumes of gasoline and distillates.
shale oil or gas the others are the bility, and on-stream time. Some For refineries that are configured
United States, Canada, and China aspects of refining have not for bottom of the barrel upgrading
and Argentina is the only shale changed, such as determining how (such as the typical US and Latin
producer in Latin America (see a new crude oil fits into a refinery American refinery), this can actu-
Figure 1).6 Several joint ventures operation by acquiring comprehen- ally be a limiting factor for the
between Argentinas national oil sive understanding of the physical quantity of shale oil that can be
company, YPF, and international properties and unique characteris- added to the crude blend. Blending
producers have been ramping up tics of that crude and how it will shale oils with heavy asphaltenic
production. Also, the introduction interact with the rest of the crude crudes makes sense to balance the
of newer technologies is reducing oils in the refinery crude diet. mix of products produced from the
the cost of drilling and producing Todays environment does, crude distillation tower since the
from shale oil and gas reserves. however, make obtaining this resultant blend can produce a
From the authors experience, a knowledge quickly and efficiently desirable distillation profile for
number of Argentina refineries are more important than ever to be many refiners based on their
already processing some level of able to adapt to changing condi- current configuration and product
tight oil produced in the country, tions. Several companies have mix. However, this practice is likely
or are considering what changes developed, or are working to to produce blend compatibility
may be needed in their operations develop, more rapid evaluation issues that can negatively affect
to start processing this local methods that improve upon refinery operations.
resource. Indications are that Latin analytic models to help understand Although asphaltene stability has
American shale oil and gas produc- the impacts of adding a particular always played a role in crude
tion shows more promise than pipe crude oil to a refinery blend before blending, the high paraffin content
dream, assuming that it can the blend is processed at the plant, of shale oils greatly increases the
weather the current low-price oil moving from experience based potential negative impact on the
environment. reaction to prediction of potential refinery process from asphaltene
With a low density, low sulphur, challenges. agglomeration and precipitation
and lack of a large residuum cut, Using the learning experiences of out of the bulk crude oil. To illus-
shale oil certainly breaks the mould North America and Argentina, trate, Figure 3 shows the saturate
of historic characteristics of oppor- which are processing shale oil, the and asphaltene component content

8 Processing Shale Feedstocks 2016 www.eptq.com


of several crude oils. While the
100
asphaltene content of commercially
Saturates
produced shale oils is low, the satu- 90
Asphaltenes
rated hydrocarbon components are 80
markedly higher than in most other 70
crude oils. As mentioned earlier, 60
the typical refinery configured to

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

www.eptq.com Processing Shale Feedstocks 2016 9


Figure 8 shows the case of an
Argentina renery processing shale
oil that experienced a desalter issue
due to an emulsion stabilised by
parafns. The left photo shows the
precipitated parafns remaining in
a centrifuge tube after a sediment
and water lab test about 2% of
Figure 6 Resolving oily brine the total sample volume. The
middle picture shows a desalter
simulator test using oil treated with
the normal demulsier programme,
C50 resulting in relatively poor water
C10 dehydration and a persistent emul-
C40
C20 C60 sion layer. Adding a crude
C30 C70
stabiliser chemical which helps
condition the crude and prevent
precipitation of asphaltenes and
0 5 10 15 20 25 30 35 40 45
waxes in crude oil blends to the
Time, minutes
programme improved water dehy-
dration dramatically and eliminated
Figure 7 Chromatograph of shale oil wax deposit the stable emulsion. This renery
has been able to continue to process
handling is the potential for low For reference, a C50 isoparafn will shale oil as a result of implement-
temperature waxes to solidify and typically melt at around 100C. ing the change in the desalter
precipitate out of solution. These One effect observed in some treatment programme.
waxes can contain very long Argentina reneries processing
chain parafn and isoparafn shale crude oils is relatively low Triazine based hydrogen sulphide
compounds. The subsequent forma- desalter temperatures as low as scavengers
tion of waxy sludge can be 100C. Low desalter temperatures Shale oils are typically low in
problematic in transportation and can make successful desalting more sulphur but can, nonetheless, have
in tank storage by impacting usable difcult by creating more stable high hydrogen sulphide (H2S)
capacity and plugging tank drains, emulsions, reducing uid mobility levels that could require treatment
and increases the fouling potential due to increased uid viscosities, for personnel protection during
in the crude unit cold heat and inhibiting efcient crude oil production, transport, and storage.
exchanger preheat train upstream scrubbing. It is generally desirable Triazine based H2S scavengers are
of the desalters. Figure 7 shows a to operate desalters at higher commonly used upstream for
gas chromatograph of a wax temperatures above 120C for the personnel safety. However, triazine
extracted from an Argentina shale typical crude slate seen in and its reaction products contami-
oil sample. The peaks indicate Argentina containing shale oils. nate the crude oil and can
hydrocarbon compounds with Lacking this ability, other operating contribute to emulsion stabilisation,
increasingly longer carbon chains modications may be needed to amine halide salt fouling, and
in the molecule. Note that parafns process shale crudes at these low under-deposit corrosion throughout
over C70 are present in the sample. temperatures. the renery. More recently, deposi-
tion of the reaction products when
treated at high levels has contrib-
uted to equipment plugging, as
seen in Figure 9.7 pH modication
in the desalter can be very effective
in removing these contaminants
from the crude oil and avoiding
negative downstream impacts.

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

10 Processing Shale Feedstocks 2016 www.eptq.com


can increase solids related emulsion as well as accelerating preheat and
formation in the desalter, can be furnace fouling. Shale oils can also
more difficult to remove due to the cause wax precipitation, which can
effect of their small diameter in produce a waxy sludge in storage
Stokes Law, and can increase foul- tanks, degrade desalter tempera-
ing in the preheat system. When tures and plug cold train
solids are removed in the desalter exchangers. Variability, due to raw
and transferred to the brine salt and basic sediment and water,
directed to waste treatment, they can stabilise emulsions in the
can cause difficulty in settling in desalter, as well as impact corro-
the primary waste treatment unit sion control in the overhead
processes. Settling issues can system. Increased solids loading
increase chemical cost and/or cause may exceed the desalter design
solids related issues in the biologi- capability, resulting in emulsion
cal treatment process. To illustrate Figure 9 Deposits from H2S scavenger control issues, accelerated fouling
the extent of the issue, Figure 10 treated crude oil of the preheat train and furnace, as
charts the results of a filterable well as more difficult phase separa-
solids test on a shale crude, using particularly new, the combination tion downstream in the primary
different micron rated filter pads of issues is. wastewater and slop oil handling
(the standard ASTM D4807 test Compatibility problems can result systems.
uses a 0.45 m pad). Notice that the from blending highly paraffinic As always, chemical programmes
small size pads capture solids an crudes with asphaltenic crudes, have to be carefully evaluated. One
order of magnitude higher (in which leads to asphaltene destabili- should take into account several
weight) than the standard test pad. sation that can stabilise emulsions, considerations, including crude
A US Gulf coast refinery with an
aggressive strategy to maximise
1200
shale oil processing needed to
1100
increase solids removal efficiency to
1000
minimise downstream impact. By
Filterable solids, ptb

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, %

chloride control efficiency. 60


However, the influx of opportunity 50
crudes, including shale oils, has 40
introduced tremendous variability 30
in the quality of the crude blends,
20
prompting many refiners to rethink
10
the role of the desalter. Refiners are
now often running this equipment 0
0 1 2 3 4 5 6 7 8 9 10
more as an extraction vessel,
Month
removing many more contaminants
than just salt. While the individual
desalter challenges may not be Figure 11 Filterable solids removal efficiency, %

www.eptq.com Processing Shale Feedstocks 2016 11


40

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-

12 Processing Shale Feedstocks 2016 www.eptq.com


urements where the water dew crudes being blended with shale contributions of local data used in some of
point is 10F or greater than the salt oils often contain high levels of the examples.
point temperature. Yellow indicates naphthenic acids, resulting in a net
0-10F differential. The red bars are increase in TAN values. While References
1 IMF Commodity Price Forecasts, Oct 2015,
instances when the saltpoint actu- beyond the scope of this article to
www.imf.org
ally fell below the water dew point detail, increased naphthenic acids
2 Annual Energy Outlook 2015, US Energy
in the system. Prior to the red verti- in the crude supply can increase Information Administration, Apr 2015.
cal line, several instances are high temperature corrosion in the 3 More about Shale, Azabache Energy Inc,
measured when the salt point hot sections of the crude and www.azaenergy.com/more-about-shale, 2014.
dropped below the water dew vacuum distillation systems, stabi- 4 Technically Recoverable Shale Oil and Shale
point, and many more that are lise emulsions in the desalter, and Gas Resources: An Assessment of 137 Shale
below the safety margin. Based on increase the toxicity of the refinery Formations in 41 Countries Outside the United
this data, in conjunction with corro- wastewater as some of the naph- States, US Energy Information Administration,
sion measurements and analysis of thenic acids are absorbed into the 13 Jun 2013.
the deposits found in the system, it brine leaving the desalter. 5 Rudgley G, Argentina: best candidate for
next shale boom?, Rigzone, 26 Jan 2015.
was surmised that salt induced
6 Arthur A, Can Argentina capitalize on its vast
corrosion was the root cause of Conclusion
shale reserves? oilprice.com, 27 Mar 2015.
high corrosion. An operating The unique challenges associated 7 Patel A, Contreras J, Green J, Wodarcyk J,
routine was established where the with processing shale oils can be Physical fouling inside a crude unit overhead
output of the ionic equilibrium overcome with a combination of from a reaction byproduct of hexahydro-
model was used to establish a new, baseline and ongoing monitoring; 1 , 3 , 5 - t ri s ( 2 - hy d rox ye t hy l ) - s - t ri a z i n e
safer operating envelope to mini- defining and implementing new hydrogen sulphide scavenger, NACE Corrosion
mise system corrosion on an operating envelopes; investing in 2015, Paper no. 6054.
on-going basis. Since that time, capital to alter the equipment 8 Kohl K, White, P, Valle A, Trigg J, Emulsion
corrosion rates have been main- configuration where warranted; breaker and metal removal technology
tained at 5 mils per year or less, and utilising multi-functional increased FCC residuum processing,
Processing Shale Feedstocks 2015.
and the operating envelope is chemical treatment programmes
actively managed based on the that provide refiners with the tools
calculated salt points as the system and the flexibility to address the Jeffrey A Zurlo is Senior Strategic Project
conditions change. specific process problems as they Manager with GE Water & Process
In addition to overhead and arise. The shale revolution in North Technologies. With over 25 years experience
tower top corrosion concerns, high America has truly changed the face in process engineering, refinery treatment
temperature naphthenic acid corro- of the energy industry there; the sales and services, hydrocarbon product
applications and technical support, he
sion may be an indirect concern potential exists to do the same in
provides global marketing and technical
when processing shale crude oils. Latin America.
support to the refining and gas processing
As mentioned previously, blending industries, with a principal focus on best
shale oils with heavier crudes is a practices, knowledge management, web
typical practice to achieve the Acknowledgement enabled analytics, technology development,
needed volume of the various refin- The author greatly appreciates the work and amine sweetening programmes. He holds
ery distillation cuts. It has been provided by Tatiana Schmitt Barbosa from a BE in chemical engineering from Stevens
observed in Argentina that the GE Water & Process Technologies for her Institute of Technology, New Jersey.

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cbi_ptq_shalefeedstocks_suppl_ad_apr_2016.indd 1 2/26/2016 3:31:25 PM


Novel processing ideas for a
condensate refinery
Synergised unit flow schemes for a condensate refinery aim for high value
refined products

DONALD EIZENGA, DAVID SHECTERLE and FRANK ZHU


UOP, a Honeywell Company

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

www.eptq.com Processing Shale Feedstocks 2016 15


higher yield case was found to Study basis: processing objectives
(for instance, via a modular expan-
have highest net present value sion). Alternatively, new processing
(NPV), while a lower capital facilities could be developed for
Feed Light case Heavy case
approach was evaluated, which local markets, which may be placed
Condensate, b/d 25 000 25 000
may make sense when a customer API/SG 59.4/0.741 52.0/0.771 near the feed sources in remote
is severely capital constrained. Sulphur, ppm 22 31 locations.
The market seeks the technology Products, BPSD
Off-gas, MMBTU/h 171 151
with minimal capital investment as Condensate properties
Total LPG 2800 2000
installation in remote locations Gasoline In order to understand how best to
could be a significant factor. UOP (R+M)/2 = 87 12 600 10 300 process condensate liquids, a good
proposes to handle these issues ULSD 7200 9600 understanding of the properties is
Low sulphur residue 1000 2000
with construction of modular units, required. One key attractive prop-
which have been optimised for erty in the current market
capital and operating expenses in Table 1 environment is that they are rela-
consideration of the feed properties tively low cost and sold at a
and product quality targets. extracted. These liquids include a discount to crudes, in part owing to
While the various technologies full range of hydrocarbon constitu- the major recent increases in frack-
used for hydraulic fracturing of ents from propane to heavy ing. The other key attractive
shale to produce natural gas have residues that boil at and above property is that they are light
developed over the last 40 years, 1000F (540C). The liquids are liquids, which makes them ideal for
the rapidly escalating energy prices therefore similar to other petroleum refining into higher margin gaso-
through 2014 led to a boom in use crudes, but are lighter and gener- line and diesel products. Recent
of the technology, particularly in ally sweet. For example, crudes are estimates have predicted dramatic
the United States. Technology often differentiated by API gravity, growth and sustained high levels of
advances significantly reduced the with heavy crudes averaging ~15 production of condensate; however,
cost for obtaining gas and light API, medium at ~25 API, light at this has been impacted by the high
condensate oils, which has ~35 API, and extra light at ~45 volatility in crude oil market pric-
sustained some production even as API. Condensates average 55 API, ing. Legislation on the sale of
crude prices have fallen in 2015. but there is a wide range of compo- crude oil and lightly processed
Projections suggest that extraction sitions depending on the source, condensates from the US is also
of such liquids may increase further and the composition may change as having further impacts, and in 2015
and they will likely be processed for the field matures. the US began trading light crude oil
many years to come. US shale The question for gas producers, for heavy Mexican crudes to the
deposits are distributed over a wide midstream companies, and refiners mutual advantage of refiners in
range of the country in a number of is how best to process these liquids. both countries.
formations (see Figure 1). Certainly, adjustment to refinery Condensates may contain up to
In the process of extracting gas operation is required, and possibly 10% LPG, and are typically high in
from the wells, condensates and revamp of existing equipment and/ both light and heavy naphtha. In
natural gas liquids (NGLs) are also or addition of new process units fact, a survey of over 100 world-
wide condensates showed that LPG
+ light naphtha + heavy naphtha
ranged from 30% up to over 90%,
LPG
with a median near 60%. The
remaining material is mostly in the
Isom. distillate range, suitable for jet fuel
and/or diesel fuel with appropriate
processing. Condensates are mostly
To quite low in the heavy residue
1 NHT gasoline
range (boiling above 685F, 360C).
For the study, a light case and
Reforming heavy case feed were considered
Condensate CFU
feed 3 for a 25 000 b/d condensate refinery
(see Table 1). The API gravity was
2 59.4 for the light case and 52.0 for
Distillate the heavy case. Sulphur was low at
DHT product 20-30 ppm compared with levels of
up to 2% in more contaminated
condensates and conventional
Residue
crudes. Target products for the
study included off-gas, which could
Figure 2 Condensate refinery: a big picture be used as fuel gas for the complex,

16 Processing Shale Feedstocks 2016 www.eptq.com


LPG
LPG 3 Naphtha
Light naphtha Stabiliser to splitter
Heavy naphtha

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

Figure 3 Commercial CFU and redundant CHT fractionation

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

www.eptq.com Processing Shale Feedstocks 2016 17


A
LPG

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

Figure 4 Alternative CFU: crude, three-column and two-column configurations

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

18 Processing Shale Feedstocks 2016 www.eptq.com


in the CHT to reheat, and the ques-
CFU options comparison
tion of whether the capital and
energy savings in the CFU could
compensate for the additional capi- Parameter Commercial Crude column Alt 3 column Alt 2 column
tal and energy required by the CHT Column 1 pressure, psig 25-75 25-50 25-50 >120
Column 2 pressure, psig <25 --- <25 <25
fractionator column (relative to Column 3 pressure, psig >120 >120 >120 ---
separate hydrotreating units) was Column stages Base 67% 67% 67%
not yet resolved. Exchanger duty Base 100% 73% 72%
Fuel gas savings were achievable Heat required Base 110% 87% 87%
Equipment capital Base 95% 90% 80%
in the CFU, and the alternative
three-column and especially the
alternative two-column approach Table 2
showed reduced capital. It was
determined that the crude column which can be accomplished with case of condensates where naphtha
approach was not in fact optimised minimal capital and operating quantity is higher than distillates,
and did not provide any heat expense. Interestingly, it was found this is a significant processing
advantage. The three-column that, even for small units, some- penalty.
approach was good for high LPG/ times the addition of equipment Estimated capital costs for the
low residue condensate processing, such as a hot separator or addi- approaches were found to be similar
with potential minimum capital tional diesel drying equipment can (see Table 3). The combined
using an adjusted two-column be more cost effective. While approach had slightly higher equip-
configuration. To determine a clear combined hydrotreating can signifi- ment costs, but with lower
winner, the entire complex must be cantly reduce equipment count (by equipment count the erected equip-
considered. Once the overall analy- about 30%), full fractionation is ment cost estimate and plot area
sis of CFU and CHT including required was slightly lower. This
redundant fractionation
considered, it was found that the
was In combination with was a surprising result, explained
by the fact that savings in reducing
energy savings in the CFU were an optimised CFU a number of pieces of equipment
offset by the higher energy costs of were offset by higher costs for the
the downstream CHT. approach, the CHT larger, higher pressure reactor
section exchangers, reactors, and the
Idea 2: combined hydrotreating approach showed fired heater reboiler (more expen-
design sive equipment). The main penalty
For the relatively easy hydrotreat- a marginal NPV with the CHT approach is the addi-
ing requirements within the small tional heater duty and operating
condensate refinery study, it was
advantage with lower cost associated with the required
initially proposed that the objective
should be to minimise equipment
capital but higher naphtha/diesel fractionation.
In combination with an optimised
by combining the feeds into a CHT operating expenses CFU approach, the CHT approach
unit (see Figure 3). The expectation showed a marginal NPV advantage
was that significant cost savings with lower capital but higher oper-
could be achieved. required to cleanly separate the ating expenses. Equipment
The high level concerns about diesel product from the naphtha. installation factor estimates and
this approach were whether the This fractionation requires a rela- fuel costs have a strong effect on
naphtha was being over-processed, tively high cost column and fired the conclusion, and they are some-
and also whether the cost of redun- heater. The naphtha is now being what speculative for study level
dant fractionation of the naphtha processed at the more severe condi- estimates. In this case, a more tradi-
from the distillate feeds could be tions required for ULSD tional, commercialised route could
overcome. Additionally, it was production, and especially in the be chosen to minimise the project
questioned what the best approach risk and fuel costs, or the more
might be within the diesel hydro- novel approach could be taken to
treating (DHT) unit to optimise the CHT options comparison minimise capital cost. In cases
separated configuration. where the naphtha processing
In the case of separate hydro- Parameter Separated Combined requirement is more severe, or the
treating, each unit has optimised NHT & DHT hydrotreating ratio of naphtha to diesel was
catalyst selection, pressure condi- Equipment capital Base 110% lower, it is expected that a CHT
Installed capital Base 90%
tions, gas circulation, and Heat required Base 144%
approach could show greater bene-
fractionation to meet the product Annual operating fits. The properties of the
objectives. The naphtha and distil- expenses Base 180% condensate feeds must be well
late products require only stripping understood, and the optimisation
to remove H2S and light ends, Table 3 approach must consider the overall

www.eptq.com Processing Shale Feedstocks 2016 19


required to meet the gasoline octane
target (87 R+M / 2). A variety of
isomerisation unit technologies and
configurations is available, depend-
ing on the octane level required and
any other limitations such as gaso-
line pool aromatic and/or benzene
content. Isomerisation processes can
be used with the UOP Platforming
process unit. For typical refinery
Hot separated unit configurations, each
DHT reflux
separator unit may have a reasonable design
liquids
Naphtha to which is best for operability and
Stripping steam
processing maintenance, but this may be a high
Naphtha capital approach. On the other
separator liquid hand, novel synergised solutions
may be used to optimise the refin-
Diesel product ery economics by integrating the
to drying units, reducing equipment, and
adjusting the process operating
Figure 5 Novel combined stripping approach conditions (see Figure 6). Both prod-
uct value and equipment capital
costs need to be considered (see
H2 MUG Figure 7). For example, a low capex
Naphtha
NHT H2 net gas approach may eliminate equipment,
feed but result in lower yields of gaso-
Light
naphtha line, higher LPG production, or
Isom.
even going off-specification for
certain feeds. On the other hand, a
Naphtha Heavy To high yield approach may also be
naphtha gasoline
stripper Reforming able to eliminate some equipment
H2 net gas as well but require more frequent
catalyst regeneration. In the system
Figure 6 Illustrative naphtha complexes studied for the condensate refinery,
it was found that the high yield
complex rather than individual services to reduce column overhead approach had a payback of less
units. equipment shown in Figure 5. than two years for the additional
In the separated unit case, each capital costs relative to a lower
individual unit could be better opti- Idea 3: innovative naphtha complex capital approach.
mised, and shared auxiliary systems schemes UOPs capabilities in kinetic
and more limited integration is also Due to the paraffinic nature of the modelling of catalyst performance
possible. One such novel approach study feed, both catalytic reforming and process simulation of a variety
is the combination of stripper and isomerisation processes are of flowscheme options were used
to optimise the unit. An economic
analysis considering capital and
0 10 operating expenses, yields, and
High yield C5+ yield cycle length impact was carried out
LPG yield for several solutions. Significant
1 8
capital cost savings were achieved
LPG volume, LV%
C5+ volume, LV%

using innovative naphtha complex


2 6 schemes relative to the base case
separated unit configuration. A
3 4 higher yield case was found to
have the highest NPV, while a
Low capital
lower capital approach was evalu-
4 2
ated, which may make sense when
a customer is severely capital
5 0 constrained.
Operating condition Even for a small complex where
equipment minimisation appeared
Figure 7 Naphtha complex trade-offs to be a sound approach from a high

20 Processing Shale Feedstocks 2016 www.eptq.com


level, catalyst and process condi- modular units. This includes natu- to the following Honeywell UOP personnel
tions have a signicant impact on ral gas liquids separation units, who participated in the work described here:
project economics. isomerisation units, Merox units, Joshua Kaye, Ron Long, Charlie Van Zile, Dick
Hoehn, Dave Bachmann, Paul Steacy, Mark
and catalytic process units such as
Benson, and Rich Russeff.
Conclusion NHT and reforming.
In the construction of new plants, The recent expansion of shale Reference
two choices are generally available: fracking for gas and generation of 1 Photo: American Petroleum Institute; Patrick
stick built construction and modu- condensate feedstocks has been a C Miller, APIs Energy from Shale campaign
lar construction. There are a great opportunity and a challenge features Bakken, thebakken.com, 21 Jan 2015.
number of reasons why modular to produce high value rened prod-
Donald A Eizenga is a Principal Optimization
may be preferred for the study ucts. In order to capture the value,
Engineer with Honeywell UOP. He has 19 years
case, including: a good understanding of the feed
at UOP in R&D, field operating services, and
25 000 b/d capacity is ideal for and processing technologies is engineering design and holds a BS in chemical
modular scale required. As illustrated, optimising engineering from Michigan Technological
Higher levels of quality control is not the same as minimising, and University.
can be achieved in the design the effort should consider the Email: Don.Eizenga@honeywell.com
Shop fabrication and inspection whole effected complex. David J Shecterle is a Fellow and Isomerization
lead to higher quality and The use of innovative naphtha Technology Specialist with Honeywell UOP. He
improved schedule processing approaches and poten- has 34 years at UOP and holds over 20 patents
Modular is more suitable for tial for condensate reneries and a BS in chemical engineering from the
remote locations where skilled represent value added opportuni- University of Wisconsin.
Email: David.Shecterle@honeywell.com
labour is limited ties. Use of a modular approach
Frank (Xin) Zhu is a Senior Fellow and Leader
Signicant schedule reductions can bring signicant advantages in
of the Engineering Innovation Group with
and logistics savings are realised project execution. Honeywell UOP. Before joining UOP, he was
Projects can be executed with a a Research Professor at the Centre for Process
xed lump sum price. Platforming is a trademark of UOP. Integration, University of Manchester, UK. He is
UOP and UOP Russell have the author of Energy and Process Optimization
signicant experience in the design, Acknowledgement for the Process Industries by Wiley in 2014.
construction, and delivery of The authors would like to express sincere thanks Email: Frank.Zhu@honeywell.com

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Monitoring against process problems

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.

22 Processing Shale Feedstocks 2016 www.eptq.com


Accelerated fouling can lead to
additional energy costs with the 3.0
crude unit fired heater, limited

Oil production, million b/d


throughput when the fired heater 2.5 28%
becomes duty limited, or earlier
shutdown for heat exchanger clean- 2.0 20%
ing. All these negatively impact the
profitability of the refinery. 1.5
14%
Traditional manual heat exchanger
1.0 11%
fouling monitoring with limited
data and Excel spreadsheets does 7%
5% 5% 6%
not always catch which crude 0.5
3%
blends are incompatible, thus the
0
same condition for accelerated foul- 20.0 20.1 to 25.1 to 30.1 35.1 40.1 45.1 50.1 >55.0
ing can be repeated in the future. It 25.0 30.0 to 35.0 to 40.0 to 45 to 50.0 to 55.0
should also be noted that the API gravity, crude oil density
percentage of crude oils blended
will have an impact on crude Figure 2 EIA expands monthly reporting of crude oil production with new data on API
incompatibilities. For example, an gravity www.eia.gov/todayinenergy/detail.cfm?id=23952
80-20 blend with 20% tight oil may Source: US Energy Information Administration
not be enough to see accelerated
fouling, whereas a 70-30 blend may exchangers prior to the desalter. Crude incombatability and fouling
be unstable and have additional When operating with one crude oil Today, refiners are also installing
unwanted fouling. or a stable crude oil blend, fouling WirelessHART (IEC 62591) temper-
For the US, the EIA expanded its occurs primarily in the hot section ature and pressure measurements
monthly reporting of crude oil downstream of the desalter and not around all crude unit preheat
production with new data on API in the cold section. Because of this, exchanger bundles and implement-
gravity. What was so interesting the cold section exchangers typi- ing predictive analytic software
was that, for the first nine months cally have minimal process applications to monitor and analyse
of 2015, most (50.8%) of the crude measurements like temperatures heat exchanger performance and
oil produced in the Lower 48 states and pressures in and out of each minimise energy and capacity
were light oils with an API gravity losses. Improvements in online
above 40 degrees (see Figure 2). Improvements in monitoring and analysis enable
The largest share of production refineries to better understand
was in the 40.1 to 45 degree online monitoring accelerated fouling due to crude
API gravity range. Production incompatibilities and identify
increases over the past several and analysis which tube bundles require clean-
years in the Bakken, Permian ing. Fouling across the bundles is
Basin, and Eagle Ford formations enable refineries to not linear, so determining which
account for almost all recent bundle is fouled and needs clean-
growth in US crude oil output.
better understand ing can be difficult to determine
These low permeability (tight oil)
formations are producing mostly
accelerated fouling without all the process measure-
ments like temperature, flow, and
light crude oils. due to crude differential pressure.
For the US Gulf Coast, there was For example, a Gulf Coast refiner
a major investment in refineries to incompatibilities that was one of the first to use tight
process heavier and sour crude oil experienced severe and unex-
oils from sources like Venezuela pected fouling in the crude unit
and Canada. This upgrade invest- bundle for monitoring heat preheat exchangers. Unfortunately
ment in refineries was done prior exchanger fouling. But tight oils for the refinery, it was forced to
to technology advancements and have paraffin waxes and significant shut down to clean the excessive
the shale boom that has taken quantities of filterable solids (as fouled heat exchangers, resulting in
place in the United States over the much as 200 lb [90 kg] per thou- lost production and additional
past several years. Unfortunately, sand barrels) that are fouling the cleaning costs. The refiner has since
tight oil is not heavy or sour, so cold section heat exchangers. added online temperature and
this creates a mismatch in crude Refiners are now beginning to pressure measurements on all heat
oil properties required for refiner- monitor these heat exchangers exchanger bundles, implemented
ies upgraded to handle heavier more closely and work with both software to analyse fouling, and the
and sour crudes. automation and chemical compa- crude unit process engineer reviews
Another noticeable change is the nies to mitigate abnormal and fouling every day. They also have a
crude unit cold section preheat accelerated fouling. better understanding on the

www.eptq.com Processing Shale Feedstocks 2016 23


samples or online density measure-
Light crude to condensate ments are needed to monitor for
Non-upgraded bitumen varying crude oil gravity.
Canadian Play
Heavy diluted bitumen Finally, reners processing light
USA Play
Shaunavon tight oils initially saw deciencies
Syncrude in fuel product qualities such as
Alaska North Slope cold ow properties. However,
Spearfish catalyst manufacturers quickly
Viking changed the functionality of their
Uinta Black Wax catalysts to compensate for changes
Cardium in the raw feedstock qualities. In
Niobrara addition, tight oil has shown higher
Alberta Bakken
levels of calcium and iron, which
Miss Lime
can lead to catalyst poisoning.
Wolfcamp
Although the catalyst loaded will
Marmaton / Hogshooter
be xed until the next turnaround,
Cline
Bakken
there are options to change depend-
Avalon / Bone Spring ing on expected future use of crude
Duvernay oil feedstocks and product quality
Utica specications and desired yield.
Cana Woodford / SCOOP
Barnett Combo Conclusion
Eagle Ford Light tight oil production is
0 5 10 15 20 25 30 35 40 45 50 55 60 65 currently being tested with low
crude oil prices globally and the
Figure 3 API gravity variability Source: Platts abundance of other opportunity
crudes. There may be a temporary
percentage of different crudes the drill site, during transporting, decline in tight oil production
blended to determine what crude and when ofoading. While amine during this over-supply period, but
blends are incompatible, resulting based H2S scavengers are added, long-term tight oil will be a crude
in accelerated fouling; this informa- tight oil loaded in the cold of oil that reners use and they need
tion is forwarded to the schedulers winter can have safe conditions at to understand the challenges asso-
and planners. Although tempting the site prior to leaving and then ciated with this different oil.
to buy any discounted opportunity transported to a warmer climate. Because their properties can vary, a
crude on the market, now crude oil The mixing during transport along traditional crude assay does not
purchasers also utilise crude incom- with a change in temperature can always represent the crude oil
patibility information along with result in higher vapour pressure delivered to the renery. Hence,
crude properties and price to deter- and the release of entrained H2S, reners will learn to process this
mine compatible feedstocks for making off-loading a potential tight oil and make the required
the renery. safety hazard. To mitigate the modications to their processing
Even with knowledge about safety risk, hydrogen sulphide conguration to best utilise the
crude blend incompatibilities, a monitoring and vapour recovery lighter crude oil.
rener may still experience acceler- should be standard for loading and
ated fouling issues when the ofoading tight oil.
supply chain is disrupted. For
example, a crude shipment may be Crude blending complexities Tim Olsen is a Refining Consultant within
delayed due to severe weather in As was mentioned earlier, the API the global refining industry solutions group
the Gulf, thus a renery will run gravity of opportunity crudes can of Emerson Process Management where he
with what crude is available on vary despite coming from the same supports Emersons technical and business
site, which may not be the source. Figure 3 highlights these strategy. He has been with Emerson for 18
preferred crude blend. variations, showing Eagle Ford years and was previously with UOP as a
basin tight oil with the highest vari- technical advisor on refinery start-ups around
H2S and safety ability. Reners should be aware of the world. Tim is a past chair for the AIChE
A further challenge in processing this variation to ensure modern Fuels & Petrochemicals Division (F&PD), and
was the Meeting Program Chair for the 2014
light tight oils is hydrogen sulphide crude tank level measurements can
AIChE Spring Meeting in New Orleans, LA. He is
(H2S) and the amine based H2S accurately measure the tank, no
currently a three-year F&PD Director, a member
scavengers added prior to trans- matter the API gravity, and mass of the Chemical Engineering Operating Council,
porting. Although tight oil is ow measurements with crude oil a member of the AFPM Plant Automation and
considered sweet (little sulphur blending to ensure more consistent Decision Support Committee, and is on the
content in the crude oil itself), there blends. If blending is based on a Board of Directors for Emersons Global Users
is H2S that needs to be addressed at volume basis, additional laboratory Exchange. Email: Tim.Olsen@Emerson.com

24 Processing Shale Feedstocks 2016 www.eptq.com


Impact of light tight oils on distillate
hydrotreater operation
Addressing the range of challenges brought to diesel and jet production by light
tight oil processing

ROBERT OHMES and MATT LEHR


KBC Advanced Technologies

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.

Low-cost natural gas

Utilities from Utilities Utilities Hydrotreated


suppliers to units Lower octanes/yields naphtha

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

Naphtha Fuel oil


Cracks well pool
CFHT

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

Figure 1 LTO impacts on refining

www.eptq.com Processing Shale Feedstocks 25


as the basis to generate kerosene
and diesel hydrotreater feeds. Each
assay was individually processed in
Reactor(s) a Petro-SIM simulation model to
H2-rich generate a typical kerosene and
CW
offgas diesel fraction. Each fraction was
then processed in a generic kero-
Fired
heater To sene or diesel hydrotreater
Stripper fuel gas
Hydrogen-rich tower (DHTR-SIM) model to predict the
make-up gas CW performance changes in unit opera-
Overheads tion. The model not only predicts
Kerosene
feed
receiver the operational and product quality
Possible changes, but also the reactor heat
Feed/effluent
exchanger
light liquid balance and catalyst deactivation
overheads
CW impacts.
Reactor effluent
cooler Separator Hydrotreated Table 1 summarises the general
distillate operating conditions of each
product
Stripper hydrotreater.
bottoms pumps CW Though the design parameters,
catalyst type, and operating targets
Figure 2 Single separator hydrotreater configuration for each reners distillate hydro-
treater units will vary, these generic
Therefore, a comparison of example above.1-10 The focus of this article is units should provide valuable
LTO, conventional US, Asian to understand the impact of LTOs insight into the impacts of process-
Pacic, and West African crude in the distillate train, and highlight ing LTO crudes versus similar
distillate qualities presents a possi- areas that reners should evaluate crudes.
ble mechanism to provide and consider as part of LTO Co-processing LTO with other
operating and product impact processing in their facilities. feeds is an operational advantage
insight for hydrotreaters in LTO for kerosene and diesel feeds. The
processing facilities. The following Distillate evaluation methodology unit capacity may not be entirely
will provide some high level To begin the process of understand- utilised by the LTO and a heavy/
impacts of LTO processing on a ing the impact of LTO on sour/aromatic feed might be
facility, and then use a kinetic conventional rening operations, included to utilise hydraulic and
model to highlight the unit specic benchmark crudes were selected severity capacity. Kerosene and
impacts that can occur. that have similar properties of LTO diesel boiling range fractions are
crudes (high parafn content, lower generally compatible and opera-
Impact of light tight oils on refinery sulphur/nitrogen, poor cold ow tional issues due to blending of
operation properties, for instance). In review- these dissimilar fractions are mini-
Figure 1 summarises some of the ing crude qualities on a global mal. Compatibility for heavier
high-level impacts of processing basis, some of the sweet waxy boiling fractions (gas oils and resids)
LTOs in a conventional renery. crudes from Asia Pacic have simi- do exhibit different behaviour, but
The key challenges include, but are lar qualities to LTO crudes. Hence, are excluded from this discussion.
not limited to: for this study, the comparison Therefore, cases were included to
Managing crude compatibility, crudes chosen were Bach Ho, understand the impact of processing
asphaltene deposition, wax forma- Gippsland, Cossack, and Kutubu. blended distillate feeds, especially
tion, and fouling in the crude and In addition, West African light cracked stock streams.
vacuum units sweet crude (Qua Iboe) was Prior to beginning the evaluation
Handling the higher content of included in the analysis, as these process, some background is
naphtha in crude, as well as the crudes typically compete with LTO included on distillate hydrotreater
lower content of vacuum resid crudes in US reneries. congurations and catalyst systems.
Managing impact on reformer Crude assays from an assay data-
yields due to the poor N+2A base that KBC licenses were used Fixed bed hydrotreating background
content of naphtha With renery installed or revamped
Finding ways to handle poor cold Hydrotreater operating conditions hydroprocessing units, the design
ow properties in distillate train basis was often dictated by process-
Identifying alternative operating ing of feedstock from heavy crudes,
Kerosene HDT Diesel HDT
and optimisation opportunities to LHSV ~2.5 ~1.0 especially in the last decade. The
fully leverage LTO processing. Reactor inlet P ~600 psig ~1200 psig aromatic nature of these heavy
Though outside the remit of this Cycle length ~ 4 years ~ 2 years unconventional crudes, along with
discussion, several resources are more heteroatoms in cracked
available to address the items listed Table 1 lighter products, typically requires

26 Processing Shale Feedstocks www.eptq.com


Lean
amines
Hydrogen-rich recycle gas Hydrogen
recycle Gas
compressor scrubber

Reactor(s) Sour offgas


Rich
Quench H2 amines
LP vent to
fuel gas
CW
Fired
heater To
Stripper fuel gas
tower
HP
CW
Separator
Overheads
Distillate
receiver
feed
Air Possible
Feed/effluent
cooler light liquid
exchanger
overheads
CW
Reactor effluent HP
cooler Separator Hydrotreated
distillate
Wash
product
water LP Stripper
Separator bottoms pumps CW

Figure 3 Three separator hydrotreater configuration

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

www.eptq.com Processing Shale Feedstocks 27


impact of crude type on cold
Kerosene properties
properties.
As shown above, the key differ-
Property WTI Bakken Eagle Ford Bach Ho Cossack Gippsland Kutubu Qua Iboe ences in properties are sulphur and
API 43.2 41.2 44.6 46.8 42.2 43.7 40.0 38.7
freeze point. The LTO kerosene
Sulphur, ppmw 1271 75 42 52 70 587 68 516
Paraffins, vol% 42 35 45 54 43 47 36 30 streams have sulphur similar to
Aromatics, vol% 14 16 13 12 17 20 21 17 their Asia Pacific crude counter-
Freeze point, F -52 -47 -49 -28 -52 -38 -31 -55 parts. In fact, most LTO kerosene
streams require very little hydro-
Table 2 treating to achieve sulphur levels
for blending into the diesel pool.
Kerosene hydrotreater KPIs Regarding freeze point, LTO cold
properties are on par with conven-
tional US crudes as well as West
Property WTI Bakken Eagle Ford Bach Ho Cossack Gippsland Kubutu Qua Iboe
Sulphur, ppmw 10 <1 <1 <1 <1 3 <1 4 African crude sources. However,
LHSV, hr-1 Base Base Base Base Base Base Base Base Asia Pacific crudes have extremely
WABT1, F Base Base Base Base Base Base Base Base poor freeze point values. To meet
Chemical H2 Base 1 -8 -12 -2 -5 4 8
the specification for jet production,
consumption1,
scf/bbl FF the back-end cut point would have
Note 1 Variable value is delta of new case minus base case to be adjusted down by as much as
50F, which will significantly
Table 3 decrease jet production but will
result in additional material in the
improvement to meet ultra-low nearly at jet quality and can be met diesel pool and for hydrotreating in
sulphur diesel (ULSD) specification. with blending or clay treating. The the diesel units. Therefore, refiners
These units also need to consider diesel option requires hydrotreat- processing Asia Pacific crudes that
the removal of potential contami- ing. Some facilities see the kerosene are considering LTO imports may
nants in the top catalyst load plus stream as a fungible product and be able to substantially increase jet
cold flow property improvement in hydrotreat to meet the ULSD speci- production, at the expense of diesel.
products. The hydrotreating bed can fication and clay treat when
have a first bed that manages pres- producing jet. The fungible advan- Reactor operating results
sure drop due to feed contaminants tage is most readily captured in Using the generic reactor discussed
and saturates the olefins contained northern tier refineries in the above, each of the LTO and
in cracked stocks, the remainder of production of Arctic diesel. paraffinic kerosene feeds were
the first bed and other reactor beds processed through the unit. As
being hydrotreating catalyst. For refineries most kerosene hydrotreaters oper-
Operational options might be to ate in either a sulphur mode to
split the catalyst load, with a higher considering LTO meet ultra-low sulphur kerosene
activity catalyst and dewaxing cata- (ULSK) qualities or in low severity
lyst occupying the same reactor.
processing, the key mode to meet jet specifications, we
Other options would be to use two challenge will be chose to operate the reactor at the
separate reactors, thereby allowing more severe ULSK conditions of
more operational flexibility. managing the cut <10 ppm sulphur. Given the low
The catalyst system chosen for sulphur content of the feeds in
each feedstock in this study was point implications on question, the reactor was run to a
appropriate for the paraffinic feed typical middle of run (MOR)
quality. Hence, the results provided jet/kerosene yield WABT and at constant LHSV.
here give the general impact Obviously, each crude has a differ-
of alternate feedstocks, but each Feedstock qualities ent yield of kerosene, especially
catalyst system and reactor configu- Table 2 summarises the typical when cut point impacts to achieve
ration will impact a refiners properties of the kerosene range freeze point are addressed, but the
specific results. material (350-500F) for the crudes constant LHSV approach helped
reviewed in this analysis. These normalise the results for demon-
Kerosene hydrotreater operations cuts were generated by taking the stration purposes. Table 3
Kerosene has two potential product respective crude assays and summarises the key operating
dispositions: jet product or diesel processing them in a KBC Distop conditions and performance results.
blending. The jet option has more simulation to produce as-cut kero- As expected, the LTO and Asia
stringent specifications to meet than sene streams. Though this stream is Pacific crudes produced minimal
diesel, making jet a more restrictive typically drawn to a freeze point product sulphur when compared to
specification to meet without specification, this fixed cut range a conventional US crude and West
hydrotreating. LTO jet streams are was selected to demonstrate the African crude. Therefore, most

28 Processing Shale Feedstocks www.eptq.com


kerosene hydrotreaters should be Diesel properties
able to process LTO crudes if they
are capable of processing the other
Property WTI Bakken Eagle Ford Bach Ho Cossack Gippsland Kutubu Qua Iboe
peer crude kerosene streams.
API 35.3 34.7 38.5 40.5 34.8 36.0 32.3 33.0
Hydrogen consumption does not Sulphur, wt% 0.25 0.08 0.03 0.03 0.04 0.12 0.05 0.12
vary substantially, as most ULSK Nitrogen, wt% 0.02 0.01 0.00 0.01 0.01 0.00 0.01 0.01
units are focused on meeting the Paraffins, vol% 35 29 42 46 40 49 31 27
Aromatics, vol% 20 24 17 16 23 24 28 23
sulphur target for ULSD blending.
Cloud point, F 10 4 17 39 15 37 26 15
Minimal conversion, gravity shift, Pour point, F 8 0 14 7 13 32 22 10
boiling point shift, and cold Cetane index, D4737 61 59 68 76 59 63 54 55
property shift occur across conven-
tional hydrotreating units in ULSK Table 4
mode.
For refineries considering LTO Feedstock quality nitrogen then their US conventional
processing, the key challenge will Table 4 summarises the key feed crude counterpart. When comparing
be managing the cut point implica- properties for our marker crude, LTO crudes to other Asian light
tions on jet/kerosene yield rather LTO crudes, and global paraffinic sweet crudes, the properties are
than hydrotreater performance, as crudes. These cuts were generated quite similar (low sulphur, high
well as managing any trace contam- by taking the respective crude paraffins, low aromatics). Therefore,
inants contained in the crude that assays and processing them in a refineries that are currently process-
appear in the kerosene range. KBC Distop simulation to produce ing these (or other) light sweet
Optimisation opportunities may as-cut diesel streams. The cut point crudes can consider processing LTO
exist if the LTO crude provides ranged between 500F and 650F crudes. Finally, many US refiners
hydraulic capacity in the unit or have been displacing West African
allow the refiner to run the unit in A key advantage of crudes for domestically produced
block operation to create capacity LTOs. As shown, though the West
for treating other streams such as processing LTO crudes African crudes have similar sulphur
naphtha and distillate. and nitrogen levels as LTOs, these
is that the severity same crudes have lower paraffins
Diesel hydrotreater operations and higher aromatics. Hence, the
One of the key advantages of
requirements are LTO crudes should be easier to
processing LTO crudes is that the
severity requirements are signifi-
significantly lower process within the distillate hydro-
treater than the West African
cantly lower than medium or heavy than medium or counterparts.
crudes. Therefore, for any given
refiner, including LTO in the heavy crudes Reactor operating results
process mix can allow for alternate Each crudes diesel was processed
operating scenarios, such as addi- by itself through the generic hydro-
tional throughput, including some (260C and 340C). Though multi- treater mentioned previously. Each
or more cracked stocks, or extend- ple assays exist for each crude type, case was run at constant through-
ing catalyst cycle length. However, Table 4 provides a general indica- put (LHSV) and to either an 8 ppm
these paraffinic crudes have poorer tion of the distillate qualities for sulphur target or to minimum
cold flow properties compared to each respective crude. WABT to understand the impact of
conventional crudes and must be As Table 4 shows, LTO crudes crude type on hydrotreater opera-
managed through product blend- such as Eagle Ford and Bakken have tion. Though most refiners will
ing, additives, or catalyst systems. significantly lower sulphur and process a blend of several crudes at

Diesel hydrotreater KPIs virgin diesel feeds

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

Note 1 Variable value is delta of new case minus base case

Table 5

www.eptq.com Processing Shale Feedstocks 29


most severe feedstock within most
Diesel hydrotreater KPIs virgin and cracked diesel feeds
refineries.
For the second set of cases, LCGO
Property WTI Eagle Ford Cossack WTI Bakken Gipssland was chosen as a feed. Given the
+ LCO + LCO + LCO + LCGO + LCGO + LCGO
Sulphur, ppmw 8 8 8 8 8 8
global trend to reduce fuel oil
LHSV, hr-1 0.84 1.0 0.92 0.89 0.92 1.0 production by processing vacuum
% Cracked stock, vol% 10 18 10 10 10 14 resid in delayed cokers, most refin-
Total delta T1, F Base 2 -14 0 Base 3 4 -9 ers are processing LCGO in their
Chemical H2 Base 2 -91 -19 Base 3 7 -57
consumption1, scf/bbl FF
distillate units or soon will be
Cycle length1, years Base 2 Base 2 Base 2 Base 3 Base 3 Base 3 doing so. The challenge for LCGO
processing is the high olefin content
Note 1 Variable value is delta of new case minus base case
as well as other contaminants that
come with the process, such as
Table 6 silica.
To examine the impact of these
any one time and a complete 100% constraints, the LTOs can provide a alternatives, the following cases
swap on crudes is not typical, the capacity advantage. were run. For LCO, the same
analysis does provide insight into As shown above, processing LTO generic model was used and 10%
the impact of diesel quality on is quite similar to processing other LCO was added to the feed mixture
hydrotreater performance. Table 5 global paraffinic crudes that refin- for the base WTI crude. Total
summarises key performance indi- ers have vast experience treating. throughput was adjusted to return
cators of the unit, with WTI crude These crudes can also provide the operation to base line cycle
as the base operation. additional advantages, as they length while retaining LCO
A few interesting findings come relieve other constraints within the percentage at 10%. Then, crude
out of this analysis: unit, especially those driven by types were changed and the unit
As expected, processing LTO severity and cycle length. throughput and LCO percentage
diesel significantly reduces the Therefore, by including some of adjusted to return the unit to base-
operating severity (WABT) and these feeds within the crude mix, line cycle length, with the priority
associated hydrogen consumption being to first return the unit to base
The lower WABT also increases Processing LCO or throughput (LHSV) and then
total cycle length, thereby provid- increase LCO percentage. For the
ing for optimisation opportunities LCGO with virgin cases, LCO qualities were held
on alternate operating scenarios constant, though in reality the FCC
For those crudes that result in stocks may require LCO would shift with change in
minimum reactor WABT operation, crude type.
additional catalytic capacity a reduction in For the LCGO cases, a similar
exists for alternate operating approach was used. The base WTI
considerations
feed rate (or other crude and 10% of a generic LCGO
With a reduction in hydrogen
consumption, the reactor delta
mechanisms) to was processed in the unit.
Throughput was adjusted to return
temperature decreases as well maintain overall the unit to baseline cycle length
This reduction will impact the while retaining the LCGO percent-
heat recovery train in the unit and cycle length age at 10%. Crude types were
may require additional heater firing changed and throughput and
to achieve reaction temperatures LCGO percentage adjusted to meet
Many of the Asian crudes show the refiner may be able to operate baseline cycle length, with the
similar performance to Bakken and the unit and possibly the wider priority being to first return the
Eagle Ford refinery in a more advantageous unit to base throughput (LHSV)
Bach Ho performance is signifi- manner. and then increase LCGO percent-
cantly different, given its low age. As with LCO, LCGO qualities
sulphur, low aromatics, and high Cracked stocks were held constant, though they
API gravity Most distillate hydrotreaters have would shift in a real plant with
For refineries processing West to process not only virgin diesel crude changes.
African crudes, the performance material from the crude unit, but Table 6 summarises the KPIs for
shift can be even more significant, also cracked stocks, such as LCO each of the cases. Note that the
as these crudes are higher in (FCC light cycle oil) or LCGO (light LCO and LCGO each have different
aromatics and tend to have higher coker gas oil). A set of cases was base cases.
levels of very difficult sulphur in run using a typical LCO from a Some conclusions on the cracked
the diesel feed high severity FCC that is process- stock studies:
For diesel units or refineries ing unhydrotreated feed. This Processing LCO or LCGO with
with hydrogen limitations and feedstock was chosen as it is the virgin stocks may require a reduc-

30 Processing Shale Feedstocks www.eptq.com


Nucleation
Name Growth Wax Appearance Temp Extension Liquid state
mechanism agglomeration (WAT) molecular alignment random motion Molecular type
n-paraffin

Iso-paraffin
Heat of fusion

ion
usf
of
at
He
Cyclo-paraffin
(Naphthene)

Cold flow depressant; Cloud point depressant;


reduces the rate of agglomeration reduces the rate of wax nucleation

Temperature

Figure 4 Crystallisation mechanisms

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.eptq.com Processing Shale Feedstocks 31


the fuel begins to gel, as indicated that diesel yield is retained and that deposit on exchanger surfaces,
by the pour point or CFPP. The hydrogen consumption is minimal. reducing heat recovery and possi-
thermodynamics are such that the Many catalyst vendors offer this bly increasing pressure drop across
heat of fusion can be measured by technology and will work with the exchangers or even reactor bed.
the differential temperature of the refiners to include a dewaxing layer Some mitigation options exist, but
mixture. The end point of the diesel in their catalyst load. The key chal- the most common method is dili-
negatively impacts the effectiveness lenge of using this catalyst in an gent unit monitoring and the ability
of these suppressant additives. existing unit is that the amount of to clean exchangers on-line.
Reported effectiveness of pour hydrotreating catalyst in the reactor Finally, trace contaminants can
point additives is summarised in will be reduced. Therefore, the exist in LTO kerosene or diesel
Table 7 for two paraffinic crudes.19 refiner and catalyst vendor will streams that will foul or deactivate
Each crude and distillate blend need to determine the impact of the catalyst. Some examples include
(virgin versus cracked) responds this change. If the refiner has spare phosphorus, arsenic, and silica.
differently to CFD additives. catalyst activity due to processing Phosphorus has become a signifi-
Therefore, refiners should work LTO, the impact on cycle length cant problem in the industry and is
with their chemical vendors to may be minimal. However, if the thought to be caused by oil recov-
complete the necessary testing to unit is tight on overall activity, the ery and transport additives used by
select the right additive for their refiner may need to load a higher the upstream producers. These
operation while managing the activity catalyst, which impacts unit contaminants show up particularly
economic impact. performance and catalyst costs. in the kerosene cut and have been
known to cause significant fouling
Catalytic dewaxing Potential operating issues and catalyst deactivation.
Catalytic dewaxing has existed for Though the focus of any significant
many years and has been applied feed change is always on the reactor Conclusions
in many refineries, especially those operation and resulting product LTO has become a commonplace
in Asia processing highly waxy yields and properties, processing crude source within the US over
crudes or those refiners making LTO distillates will have other the last five years, and is now
diesel for cold weather climates. poised to become a crude source on
With the advent of LTO processing, Tools like DHTR- a global level. These crudes provide
many refiners should consider a unique opportunity for refiners to
utilising this technology. SIM and Petro-SIM supplement their existing crude
Given that most refiners need a basket. Most of the challenges of
small amount of cold property can assist refiners processing LTO in the distillate
improvement, especially cloud train are around managing the
point, most facilities can just install in evaluating the impact on unit heat balance and the
a layer of dewaxing catalyst in an opportunities that arise to increase
existing unit bed. Since the catalyst
specific impact of throughput or cracked stock
operates better on low sulphur and these crudes on their processing. Care should be taken to
nitrogen feedstock, most refiners track and monitor trace contami-
put the catalyst at the bottom of the unique operation nants that can impact heat recovery,
last bed. pressure drop formation, and cata-
The catalyst improves cold prop- lyst deactivation.
erties through two potential impacts on unit operation. As Tools like DHTR-SIM and Petro-
mechanisms. The first mechanism discussed above, the unit heat SIM can assist refiners in evaluating
is through cracking of the straight balance may change significantly, the specific impact of these crudes
chain molecules that lead to high due to the lower hydrogen on their unique operation, such that
cloud and pour point. This mecha- consumption reducing the exotherm the operational changes can be
nism was used by many of the first in the reactor. Therefore, the feed anticipated and any necessary
generation catalysts. Though effec- furnace load will increase and may design, operational, or procedural
tive, the downside of this become a limiting factor. Including changes made in advance. Those
mechanism is that a significant cracked stocked in the feed mix can refiners that can quickly evaluate
amount of distillate yield is lost to help mitigate this issue, as these and manage LTO processing will
naphtha and gas due to cracking, feeds will increase hydrogen have a distinct advantage to their
and hydrogen consumption consumption and exotherm. peers.
increases across the process unit. Another impact is on the heat Finally, the authors would like to
The second mechanism is recovery train. Given that these thank Scott Sayles for his valuable
through isomerisation. This mecha- feeds are waxy, deposits can form insight on this subject as well as the
nism changes the normal paraffins on the initial preheat exchangers, original genesis for the idea of this
to iso-paraffins, thereby improving thereby reducing thermal efficiency. paper, as well as John Fagley and
the cold properties of the stream. In addition, LTO crudes may Quang Vu for their assistance with
The advantage of this mechanism is contain other chemical additives DHTR-SIM.

32 Processing Shale Feedstocks www.eptq.com


Petro-SIM and DHTR-SIM are trademarks of 10 Saleh, et al, Blending Effects of Fouling on 20 Cookson, et al, Property-composition
KBC Advanced Technologies plc. Four Crudes, ECI Symposium Series Vol RP2: relationships for diesel and kerosene fuels,
KBC licenses the Chevron Crude Assay Proceedings 5th International Conference on FUEL, 1985, Vol 64, April.
Database. Heat Exchanger Fouling and Cleaning, 5-10 Jun 21 Palmer, et al, Stability of Australian
2005. Automotive Diesel Fuels, Symp. on Stability
References 11 http://crudemarketing.chevron.com/crude/ of Mid Dist Fuels, Div of Pet Chem, Div of Fuel
1 Kuhl, et al, Capitalizing on Shale Gas in far_eastern Chem ACS 8/26-31, 1990.
the Downstream Energy Sector, AFPM Annual 12 Sandu, et al, Innovative Solutions for
Meeting, Mar 2013. Processing Shale Oils, Hydro Proc, 7/2013. Robert Ohmes is a Principal Consultant with
2 Sayles, et al, Unconventional Crude Oil 13 OSHA regulations, 29CFR 1910.119 Process KBC Advanced Technologies, Inc., Houston,
Selection and Compatibility, NPRA Annual Safety Management of Highly Hazardous Texas. His primary responsibilities are
Meeting, Mar 2011. Chemicals, state that any time a critical centred on profit improvement initiatives,
3 Ohmes, et al, Analyzing and Addressing the component in an oil or chemical plant changes, hydroprocessing unit consulting, and
Clean Fuels and Expansion Challenge, NPRA a formal MOC program is required to ensure organisational consulting for domestic and
Annual Meeting, Mar 2007. that the proposed change is made safely. international clients. Prior to joining KBC, he
4 Sayles, Unconventional Crude Processing 14 Sayles, Shale or Tight Oil Processing, AFPM worked as a refinery engineer for Flint Hills
Part 1: Metals, Crude Oil Quality Association Q&A, 10/12. Resources in Corpus Christi, Texas. He holds
(COQA), Oct 2008. 15 Kramer, Using Proven Technology to degrees from Kansas State University (BSChE)
5 Sayles, Unconventional Crude Processing optimize Profits when Processing Opportunity and Tulane University (MBA) and is a licensed
Part 2: Heteroatoms, Crude Oil Quality Crudes, 3rd Opportunity Crude Conference, professional engineer in Louisiana.
Association (COQA), Oct 2010. Mar 2012. Email: rohmes@kbcat.com
6 Lordo, et al, Shale and Tight Oil New 16 Defense Standard 91-91 Issue 7 Matt Lehr is a Senior Engineer with KBC
Frontier, 3rd Opportunity Crude Conference, (Amendment 21 Mar 2013). Advanced Technologies. He has worked
Mar 2012. 17 Sayles, et al, Solutions to Common and consulted in almost 20 refinery and
7 Sayles, Upgrading Technology Selection, Problems in Scoping, Designing, Implementing, petrochemical facilities in North America,
2007 Oil Sands and Heavy Oil technology and Operating ULSD Units, AM-06-07, 2006 South America, and the Middle East.
Conference, Calgary, Alberta, Jul 2007. NPRA Annual Meeting. Knowledgeable in hydrocracking/hydrotreating
8 Ohmes, et al, Characterizing and Tracking 18 Sayles, et al, Upgrading HTU-Feed operations, as well as refinery planning
Trace Contaminants in Opportunity Crudes, Hydrotreating, Hydro Proc, 9/05. practices, he previously worked with The Dow
AFPM AM13-3. 19 Pham Quang Du, Detailed Assays Chemical Company, Freeport, Texas, and holds
9 Lordo, Opportunity Crude Conference Conducted on Vietnamese Crude Oils, O&GJ, a BS in chemical engineering from Colorado
2008. 7/16/90. School of Mines. Email: mlehr@kbcat.com

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www.eptq.com Processing Shale Feedstocks 33


Process Notes

This exchanger is a victim of its design.

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.

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


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Chinas shale gas

The outlook and opportunities for petrochemicals based on Chinas development


of shale gas

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

for energy and a desire for securing 25


future energy resources. Currently,
the major part of Chinas energy 20
consumption is derived from 15
domestic coal reserves. In 2014, coal
accounted for approximately 10
67% of Chinas total energy
consumption. In comparison, oil 5
consumption is relatively modest at
0
around 18% (see Figure 1). Despite
na

ria

pe

lia

ia

Ve azil

a
.S
in

ad

el
ss
ra
hi

ge

ro

this, China is the worlds second


U

zu
nt

Br
an

Ru
C

st
Eu
ge

Al

ne
Au
C

largest consumer of oil behind the


Ar

US and the worlds largest net oil


importer. Total gas consumption in Figure 2 Technically recoverable shale gas reserves

www.eptq.com Processing Shale Feedstocks 2016 35


Recoverable GIP Percentage recoverable Yangtse
13%
Resource GIP
80 30% Subei
4%
70 Songliao
25%
Production, trillion m3

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

0 0% Figure 4 Overview of recoverable reserves


Sichuan Tarim Yangtse Junggar Songliao Subei Jianghan
2020, and maintain it for 10 years,
Figure 3 Overview of shale gas reserves by basin at least 5100 sq km of land is
required for drilling operations.
could displace (in the long term) or economy. Consequently, the This may not seem much compared
partially displace (short term) Chinese government has not placed to Chinas vast area, but the prob-
Chinese gas imports from LNG and the same emphasis on environmen- lem becomes apparent when
neighbouring countries via tal sustainability as have some of topography is taken into account.
pipelines. the worlds more economically Only 1% of Chinas land is in
The Chinese government was mature countries. This attitude may plains, while the rest is mostly
aiming to increase the natural gas change as the Chinese economy plateaus, hills, and basins.
share of total domestic energy matures, but for now the achieve- However, plains are the only areas
consumption to around 8% by the ment of economic objectives is the suitable for shale gas exploration
end of 2015 and to 10% by end governments number one priority. and production operations. This
2020. These increases are expected However, the nascent Chinese shale presents another significant bottle-
to substitute for domestic coal due gas industry faces multiple chal- neck for shale gas development.
to growing environmental concerns. lenges, which include: Low crude oil pricing Recent price
To achieve these targets, the lows in global crude oil markets
government has placed strong Recent data suggest have resulted in a dramatic U-turn
emphasis on developing its domes- in E&P spending globally. As a
tic shale gas reserves (see Figure 2). that total Chinese result, higher cost unconventional
Recent data suggest that total energy resources have become less
Chinese shale gas reserves are the shale gas reserves attractive to energy companies and
highest in the world at approxi- in many cases not economically
mately 31 tcm. This estimate has are the highest viable. The current low oil price
been derived from an assessment of environment has led to a number
seven major prospective shale
in the world at of high profile foreign companies
basins distributed across the coun-
try. Despite its immense shale gas
approximately 31 tcm exiting China shale gas projects
over the past 18 months. Despite
resources, China has only recently this, Chinas national oil companies
commenced shale gas production Land access Access to land surface remain highly committed to the
and actual production levels to date for operations is particularly diffi- sector and under pressure to meet
(initiated in 2012) are very small. cult in China as it is one of the government set production targets.
However, based on current shale most densely populated nations in Water constraints Typical water
gas resource estimates and domes- the world. This will severely restrict usage per shale gas well for frack-
tic natural gas demand there is shale gas operations, which require ing and other operations is 11 000
significant potential for develop- around 0.3 km per well (average to 15 000 cu m. To support 50
ment over the long term. US well spacing used as proxy). billion cu m (1.8 tcf) of shale gas
Shale gas development in China The need for additional land production, an estimated average
has not attracted the same level of required to construct water pits, of 18 million cu m of fresh water
environmental concern that has gas processing and transport infra- annually would be required. Given
developed in other regions of the structure, and roads further that Chinas estimated per capita
world such as North America and complicates matters. annual renewable water availability
Europe. This is partly because of Complex topography If China is around 2080 cu m, this poses a
the industrys infancy, but also aims to reach 50 billion cu m (1.8 significant challenge. The situation
because China is still developing its tcf) of shale gas production by is exacerbated by the fact that

36 Processing Shale Feedstocks 2016 www.eptq.com


several shale basins are in Outlook for NGLs current E&P data and Nexants
water-constrained provinces. The shale gas produced to date in analysis.
China is relatively dry, especially Our base case scenario for theo-
Chinas shale resources compared to major shale plays in retical ethane availability is forecast
Total shale gas resources are largely the US where the ethane content at approximately 37 000 b/d in
concentrated in three principal 2020, but is forecast to ramp up to
basins: Sichuan, Tarim and approximately 186 000 b/d by 2030.
Yangtze. Combined, these three
The shale gas The increase in ethane post-2020 is
basins hold an estimated 87% of
total recoverable gas. The Sichuan
produced to date in attributed to a forecasted increase
in shale gas production (see
basin alone accounts for 56% of the China is relatively Figure 6).
countrys total recoverable shale Determining estimates for theo-
gas resources, and it is within this dry, especially retical ethane availability is
region that the majority of explora- challenging and will be highly
tion and initial production is taking compared to major sensitive to Chinas total shale gas
place. Initial shale gas exploration production. To combat this, we
and production efforts under way shale plays in the US further analysed various produc-
are largely concentrated in the tion scenarios within its study to
Sichuan Basin. However, there is can be as high as 15-20%. Available measure the sensitivity of ethane
also reasonable interest in explora- gas specification data for Sichuan availability. These scenarios cover
tion in Yangtze, Subei and Tarim Basin suggests a methane content both variances in total shale gas
regions. The remaining shale basins estimated in the range 95-99%. The production and variances in gas
appear to offer lower prospects in estimated ethane content of the gas specification and the average
the near term. This is largely due to is within the range 0-4%, with an ethane content.
technical challenges and infrastruc- average content of 2% based on Across the different scenarios, the
ture issues (see Figures 3 and 4).
Official government shale gas
production targets are set by 250
Chinas National Energy Bureau as Initial target
part of the 12th five-year plan and Revised target
Production, billion m3

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

around 150 billion cu m for 2030.


billion m3

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

Figure 5 provides an overview of


20

20

20

20

20

20

20

20

20

previous and revised shale gas


production targets. Figure 6 Forecast shale gas and theoretical ethane availability base case

www.eptq.com Processing Shale Feedstocks 2016 37


so far. Based on US shale gas
Operating rate Net import Production production, gas specifications can
Consumption Capacity Net export vary greatly between wet and
60 100 dry gas within close proximity.
Production of shale gas is real-
50 ised within the wet shale gas fields
80
Volume, million tons

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

160 is theoretically feasible based on the


base case shale gas forecast for 2015-2030 imports around 1 million t/y of
140 ethylene, but this represents a rela-
120 Theoretical ethane production tively small portion of total
100 Theoretical ethane availability domestic demand at less than 5%.
Additionally, China is the worlds
80
largest importer of ethylene deriva-
60
tives. These include polyethylene,
40 styrene monomer and ethylene
20 glycol. Total polyethylene imports
0 into China in 2015 are forecast at
2014 2016 2018 2020 2020 2024 2026 2028 2030 around 10 million tons (see
B Figure 7).
3500
Many of Chinas steam crackers
Production, thousand t/yr

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

38 Processing Shale Feedstocks 2016 www.eptq.com


ethane potential and ethylene
production based on the base case Methanol conversion
6% Others
shale gas scenario with 2% ethane 2%
Steam cracker naphtha
content. 9% Ethane
The following should be noted: 6%

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

PTQ's international conference for India


held in partnership with Industrial Development Services

www.refiningindia.com

www.eptq.com Processing Shale Feedstocks 2016 39


to China showed a fall of around
100 000 tonnes in 2014, while South
Low gas production Total ethylene firm
High gas production Total ethylene spec
Koreas exports to China were
Base gas production Total spec cap from gas production reduced by almost 350 000 tonnes.
Other feedstocks South Korea is generally the
worlds largest ethylene exporter,
55 25
but its exports declined signifi-
50 cantly in 2014 due to a combination
Spec cap, million tons

20 of economic and production issues


45 (see Figure 11).

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

1000 viable until post-2025 at the earli-


est. However, the planning process
for these investments will
0 commence over the next few years.
Lee Fagg is Principal and Practice Leader for
Nexants Chemicals Consulting business in
1000
Asia, based in Singapore. He has more than
20 years of combined consulting and industry
experience covering technology, markets,
2000
2010 2015 2020 2025 2030 business planning, strategy and M&A, spanning
all major regions. He studied chemistry and
business at Leeds University, UK.
Figure 11 Ethylene global trade development Email: lfagg@Nexant.com

40 Processing Shale Feedstocks 2016 www.eptq.com


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