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Overview of a Petrochemical Refinery

Overview of a Petrochemical Refinery

The Global refineries Overview


The petroleum Waxes, paraffins, are facing hard times in the last
years and also in the further years. The refineries are changing due
different motives like obsolescence, hydro-cracking, more fuels
policy or necessity, etc
Group I Base Oils is nothing more a target.
The presentation will follow the last years , looking what is happening with the refineries
by region, mainly those with Group I Base Oils and how does it affect the future of
petroleum waxes.
In general lines the presentation will show a spreadsheet by region with the refineries,
type of Base Oil, paraffin generation or not and at least a summarize by region and a
final global view of petroleum waxes with some further predictions.
A quick analyze of substitute material can be done.
Let me introduce my friends ..

Thats not
Hi everybody !!! gonna work !!!
I know it.

Buaaa !
I dont like you
speaker !

Dirty work
always to me !

Mr. Schwarzblackneger

Mr. Pawn little dumpy boy

Miss Boring
Overview of a Petrochemical Refinery
Overview of a Traditional Petrochemical Refinery

distilation
solvent lube lube Base Oil
extraction hidrofinish hidrofinish grupo I
LVGO LN
(light vacum gas oil) (light nafta)

crude MVGO MN
(medium vacum gas oil) 61% (medium nafta)

100% HVGO HN
(heavy vacum gas oil) (heavy nafta)

BS
(bright stocks)
solvent
de-asphalt solvent
de-oiling
12%
VCB extracts (MEK/Toluene)
(vacum tower Heavy Oils slack
bottom) Aromatics refined
wax paraffin
asphalt 11%
4% 2%
foots oils
39% 27% 16% 2%
1st Important Concept

light Lubes slack wax


paraffin waxes
crude distilation 3%< oil content < 50%
B
scale wax (SRP)
A 1%< oil content < 3%
S
Important !
E fully refined paraffin (FRP)
oil content < 0,5%
O
I heavy Lubes distilation
hidro refinish

L microcrystalline wax
+ residual oils (foots oils)
S food grade
paraffin
microcrystalline residual
heavy oils filtration Petrolatums
+ semi-solids

Base Oils Lubes


waxes (paraffins/micro)
2nd Important Concept

Base Oils Lubes


Paraffins
solvent solvent solvent
Vacuum Distillate

deasphalting extraction dewaxing


finishing Group I

catalytic
hydrotreatment hydrocracking
dewaxing
hydrofinishing Group II / III
Natural

catalytic
Gas

FT process
(GTL)
hydrocracking
dewaxing
hydrofinishing Group III +
GTL
Ethylene

polymerization oligomerization hydrogenation Group IV (PAO)


organic

organic
acid

alcohol
esterification Group V (organic esters) + all others
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
1st Possibility

Shutdown or De-investment

... Should I ?

environmental concerns & headaches


accounts and attorneys
costs and non profits
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
2nd Possibility

Full Catalytic Cracker


FCC
(new concept)

catalytic
cracker

Fuels 88%
gasoline
diesel
solvent residual fuels
de-asphalt

VCB 1% losses
(vacum tower
bottom)
refined
paraffin
asphalt
2%
39% 27%
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
3rd Possibility

solvent extraction Refinery


(with alternative technology for Bright Stocks) GII / GIII
(actual trend)

slack wax hydro-cracking


9%
G III 70%
or
waxes catalytic
hydro
G II 88%
wax cracking
isomerization
GI 18%
solvent
dewaxing
refined
paraffin
2%
3rd Possibility (example 01)

Chevron Group II and Group III all hydro processing

re-shape molecules

convert wax into high quality iso-paraffins (liquids)

convert and remove impurities

no solvent, but hydrogen addition

make the same products with different crude sources


3rd Possibility (example 02)

ExxonMobil Technology routes to


Group II and Group III Base Stocks

remove wax by chilling & solvent


convert and remove impurities
boosts viscosity index
3rd Possibility (examples)

ChevronTexaco Richmond Refinery , California (USA) ExxonMobil Jurong Island Refinery , Singapore
Chevron was the first to combine catalytic dewaxing Mobil developed technology called MSDW
with hydrocracking and hydrofinishing in its Mobil Selective Dewaxing, started up
Richmond, California base oil plant in 1984. commercially in Jurong Island Refinery plant
in 1997.

Base Oil Group II Base Oil Group II

28 years experience 15 years experience


3rd Possibility (normative)
3rd Possibility (normatives)

EU road diesel - sulphur specifications


Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
4th Possibility (traditional refinery)

solvent extraction Refinery


typical G I
(old concept) slack wax to paraffin wax
solvent typical de-oiler plant
extraction
GI
BS 12%
(Bright Stocks)
solvent
solvent de-oiling
de-oiling (MEK/Toluene)
(MEK/Toluene) slack refined
slack refined wax paraffin
wax paraffin
4% 2%
4% 2%
foot oils
foot oils
2%
2%
customer

customer
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
4th Possibility (new oilfields)

Kaspiisk 26%
Wasatch 50% Krasno-Kamyshan 23%
Severo- Kamyshin 21%
Daqing 25%
Tengutino 16%
Uzen 18% Shenbei 45%

Ta Ching 35%
Assam 15%
Fareg 24% Henan 25%
Remal 19%
Bouri 15% Bombay Ruby 19%
Sarir 13% Nilo High 15%
blend 31% Bunga Kekwa 20%
Penara 18%

Minas 11%

in operation
new possibilities
new frontiers :
crudes fields with high paraffin wax content
4th Possibility

Eternity is out of this scope

the crudes will change during the time


Worldwide Petrochemical Refineries

Refinery utilization rate (%)

source : BP statistical review

1/12 year = maintenance; it means, in avg.; max 90% 92% capacity utilization during a year

worldwide average nameplate capacity is ~ 80%


1st Important Concept

World Base Oils production capacity


Million TM
60

50
PAO
45
Group III
40 Group II
35

30
Base Oil production Life Cycle
25

20
Group I
15

10

5
1975

1985

1995

2005

2020
2015
1970

1980

1990

2000

2010
Possibilities for Worldwide Refineries

Shutdown or De-investment

New refineries with FCC (Full Catalytic Cracker)

Refinery conversion to Group II and Group III

Keep Group I refineries

situation will keeps like today


enhance production of actual Group I refineries
crudes with high paraffin wax content
drive the costs and gross margins
4th Possibility

Crude oil, refining and base oils - whats going on?


20 February 2012 00:00 [Source: ICB]

The diagram below presents the estimated cost


of base oil production for a Mediterranean
solvent refining plant processing vacuum gasoil
(VGO) to produce solvent neutral oils.
The value of the by-products (primarily extract
and slack wax) has been subtracted from the
cost of VGO feedstock, which is plotted as the
net feedstock cost.
4th Possibility

High-priced Energy? Get Used to It


Wednesday, March 16, 2011 VOLUME 11 ISSUE 11
By Nancy DeMarco

Higher energy costs are likely here to stay, Purvin & Gertz Vice
President Blake Eskew told the ICIS World Base Oils &
Lubricants Conference on Feb. 25 in London.

Energy and related costs account for much of a base oil plants
operating expenses.

For solvent refining plants, only 40% to 60% of their product


yield is more valuable than their feedstock.
Wax and base oils are higher value than the VGO, while
asphalt and extract are lower.
The negative margin on heavy by-products, said Eskew,
represents a real cost to a base oil producer.
This negative margin reached $200 per ton or more in 2010 for
extracts and asphalt.
Worldwide Petrochemical Refineries
Worldwide Petrochemical Refineries

Eastern
Europe

Western
Europe

North
America
Asia
Middle Pacific
East

Africa

Latin America
Worldwide Petrochemical Refineries

2012
185 refineries
Overview
making Lubes
685 refineries
G I / G II / G III
27 %
GTL / PAO / Ester

137 refineries only G I 20 %


Only Lubes
Fuels refineries 108 refineries slack wax 15 %
73% 27%
84 refineries SR/FR wax 12 %

38 refineries FR wax 5,5 %

SR/FR wax = semi refined and fully refined waxes


FR wax = fully refined waxes

sources = oil & gas journal, Lubes n Grease magazine, IEA, MEGHs database
Worldwide Petrochemical Refineries

2012 # 185
Overview making
Lubes
685 refineries (#)
GI
G II
G III # 137
GTL
PAO only # 108
Only Lubes GI
Fuels refineries slack # 84
73% 27% wax
SR/FR
wax # 38

FR wax
27 % 20 % 15 % 12 % 5,5 %

SR/FR wax = semi refined and fully refined waxes


FR wax = fully refined waxes

sources = oil & gas journal, Lubes n Grease magazine, IEA, MEGHs database
Worldwide Petrochemical Refineries

refineries exist to process


2012 crudes into fuels
Global refining capacity
(barrels/day)

Lubes G I
refineries
Fuels 3,4%
96% SR & FR waxes
Humff ..
0,6%

sources = oil & gas journal, Lubes n Grease magazine, IEA, MEGHs database
Worldwide Petrochemical Refineries

dangerous
marketing
Ops
?????

marketing
tricks paraffins

paraffin
customers
refineries Tic Tac ...

marketing
false
attractions
Worldwide Petrochemical Refineries

develop your proprietary strategy independent of paraffins lack

use your imagination and look out for innovations and new opportunities
Worldwide Petrochemical Refineries by Region

Eastern
Europe

Western
Europe

North
America
Asia
Middle Pacific
East

Africa

Latin America
World Wax Report

World petroleum wax capacity World top 10 countries


2012 petroleum wax capacity
2012
LA ME 37%
4% 1%
AF 4%

NA 11%

19%
AP 49%

10%
7%
Europe 6%
4% 4% 4%
32% 3% 3% 3%
USA

others (26 C)
China

Russia

Ukraine
France

Poland
Brazil
India
Germany

Japan
petroleum wax = FRP + SRP + blenders + emulsion
World Wax Report

...
again ?
+ Europe 32%

NA 11%

AP 49%
ME
1%

AF 4%

LA 4%
4th Possibility
...
just me man ?

Kaspiisk 26%
Wasatch 50% Krasno-Kamyshan 23%
Severo- Kamyshin 21%
Daqing 25%
Tengutino 16%
Uzen 18% Shenbei 45%

Ta Ching 35%
Assam 15%
Fareg 24% Henan 25%
Remal 19%
Bouri 15% Bombay Ruby 19%
Sarir 13% Nilo High 15%
blend 31% Bunga Kekwa 20%
Penara 18%

Minas 11%

in operation
new possibilities
new frontiers:
crudes fields with high paraffin wax content
World Wax Report

World top 10 companies global research:


petroleum wax capacity 71 companies
2012 112 wax plants
37%

China

31%

23%

Fushun 14%
world capacity 11%

600 Ktons ~ 13% 6%


4% 3% 3%
300 Ktons ~ 6,5% 2% 2% 2%
Shell

Petrobras

others (61 C)
Rosneft
PetroChina

ExxonMobil
Sinopec

LukOil

Nippon Seiro
Sasol Wax

Total
Asia/Pacific Refineries and Waxes

AP paraffin wax capacity


KTons Fushun plan:
3.000
+ 300 Ktons
+ 13 %
2.500

2.000 Fushun 10 years


300 KT duplicated
1.500

1.000

500

0
85 90 95 00 05 10 15
Offer

Fushuns
O
paraffins

P O
O

avg. price
P P
World Wax Report

Trends in North America: Trends in Europe:

De-investment (refineries for sale) In general, very old refineries


Shutdowns Shutdowns
Economic crises Economic crises
Eastern capacities as new supplier China Russia appears to be a big player
~ 1/3 as de-oilers capacity

Trends in Asia/Pacific:

Refining capacity growth


New technologies approach (ExxonMobil / Shell)
Chinese capacities to grow, but fuels are the target (Fushun is the key)
New countries as refinery players (Vietnam / Mongolia)
China will regulate the world wax marketing
World Wax Report

Trends in Latin America:

Brazil will regulate the regions wax production

REDUC (Brazil) is going to hydrocracking (Lubes)

The wax quality in most of countries is poor


(color, oil content, moistures)

Trends in Middle East refineries:

Region with great potential to grow


Iran and Iraq leading the region
Iran is investing hard in refineries and Petrochemicals
Potential unstable area (possibilities of conflicts and wars)

Trends in AF FR paraffins:

Unstable political area


The plants are old technologies
The wax quality in most of countries is poor
(color, oil content, moistures)
Alternative materials to Replace Petroleum Waxes

GTL/FT waxes capacities enhancing:


Sasol = South Africa
Shell = Malaysia
The hard waxes are not so appropriated for candle manufacturing
The soft waxes are petroleum paraffin waxes replace material
The slack can be used by de-oilers to mfg. paraffin wax substitute
Supply chain is concentrated only in a few hands

HOF waxes (Hydrogenated Oils and Fats):

Hydrogenated Palm Oil = ex: Malaysia


Hydrogenated Soybean Oil = ex: USA
Hydrogenated Tallow Fat = ex: Brazil, Mexico

The HOF can not ne used alone as 100% substitute material


The characteristic polymorphism effect has to be mastered
Will guarantee the next years supply
Decentralized supply chain, sometimes with logistical problems
Worldwide Petrochemical Refineries

we still live in a tight balance

...
its getting worse
Buaaa !
I still dont like
you man !

bye, bye whats the


everybody !!! point ???

Thanks for your attention !!!


looking
for a job !

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