John D. Elliott, Foster Wheeler USA Corporation, Houston, Texas David A.

Wedlake, Foster Wheeler USA Corporation, Houston, Texas

Introduction Improved refinery margins and profitability are often achieved by taking advantage of lower cost crude oil while increasing the production of high value, high demand distillate products and phasing out low value, low demand products such as high sulfur fuel oil (HSFO). Increasing the use of lower cost crude oils usually involves either long-term contracts and/or taking advantage of discounted opportunity crude oils. These replacement crude oils are usually heavy and sour. Heavy crude oils are characterized by having larger percentages of residues than the lighter benchmark crude oils. Residues from these heavy crudes are frequently higher in sulfur, asphaltenes, metals, nitrogen and often TAN (Total Acid Number) compared with residues from benchmark crude oils. Handling these larger volumes of heavy residue without producing excessive volumes of HSFO requires that the refiner has residue, or bottom of the barrel, conversion facilities to turn the residue into more valuable distillate products. Those refiners that produce large amounts of heavy, HSFO generally operate at lower refinery margins and profitability than full conversion refiners. They can also suffer from low production of distillates. High demand for distillates is driven by the clean transportation fuels market. For example, there is increased demand for gasoline in North America and increased demand for diesel in Western Europe. Private studies have shown that complete bottom of the barrel conversion through delayed coking to minimize or eliminate heavy fuel oil can raise refining margins by US $1.50 to US $4.50 per barrel of crude oil. While this value depends on local situations it provides the incentive for residue conversion. Switching to lower-priced heavy crude oils and taking advantage of the light-heavy spread in pricing provides further economic incentive for these projects. Residual oil conversion projects are used to meet these needs by upgrading low value residual oil. Commonly evaluated primary conversion processes are: Non-Catalytic Processes Visbreaking Solvent Deasphalting Delayed Coking Flexicoking or Fluid Coking Partial Oxidation Catalytic Processes Ebullated Bed Hydrocracking Slurry Phase Hydrocracking Residual Fluid Catalytic Cracking

RESIDUE UPGRADING WITH SYDECSM DELAYED COKING: BENEFITS AND ECONOMICS

All the residue processes listed above have good features and specific uses that each refiner must evaluate and decide which is best for their specific situation. Delayed Coking is the most common choice for these types of projects because it offers the following benefits: a. Complete conversion of residue feedstocks and elimination of residual fuel oil production. Demetallization is nearly 100 percent. b. Production of a broad range of liquid distillates that can easily be accommodated in an existing refinery to meet increased demand for clean distillate transportation fuels. c. Moderate capital investment with a relative fast payback. d. The process has been commercialized for over 70 years and is well supported by specialty equipment vendors, chemical suppliers and third party consulting firms. e. Byproduct fuel-grade coke is easily sold at positive net-back prices. f. Modern delayed coker designs are shown to be energy efficient, environmentally acceptable and intrinsically safe. g. The semi-batch nature of the delayed coker makes the operation easier and provides operating schedule leeway on the rare occasions when equipment needs to be repaired. h. Operating and maintenance costs are reasonable. With respect to utilization of opportunity crude oils, the flexibility of Foster Wheelers Selective Yield Delayed Coking (SYDECSM) process allows a wide variety of crude oil qualities to be economically processed. Furthermore, the thermal cracking nature of the process is not affected by high TAN residues and does not produce high TAN distillates. Additionally there are a few opportunity, high TAN crude oils that are low enough in sulfur and metals to produce anode grade petroleum coke which has a much higher value than the fuel grade coke produced from the typical high sulfur, high metals crude oil residues. Recognizing that residue can be upgraded via catalytic or non-catalytic processes, this paper focuses on Delayed Coking: the most commonly used, commercially proven and reliable bottom-of-the-barrel technology for converting heavy residues. SYDECSM Delayed Coking Foster Wheeler is the leading supplier of delayed coking technology with its Selective Yield Delayed Coking process, SYDECSM. Foster Wheelers typical SYDECSM design basis for maximum liquid yield cokers minimizes the coking pressure and recycle ratio within economic and technical constraints while producing clean Heavy Coker Gas Oil (HCGO) distillate product with low contaminant levels of carbon residue and metals. A Foster Wheeler SYDECSM coker operating at low pressure and ultra-low recycle may produce as much as 25 percent less coke than one operated at traditional pressures and recycle ratios. A coker operation with zero recycle will produce even less petroleum coke and higher yields of liquid products at the expense of poorer quality HCGO having higher contaminant levels. If the downstream processing of the HCGO can economically accommodate the higher metals and Conradson carbon, this type of operation can be very attractive for incorporation into the SYDECSM Delayed Coker design

basis. A comparison of theoretical HCGO yields and properties resulting from the three main types of delayed coker design and operation is presented in Table 1. Table 1 Comparison of Heavy Coker Gas Oil Properties Based on Delayed Coker Operation SYDECSM Ultra-Low Recycle 37.9 1060 15.6 0.6 0.8 SYDECSM Zero Recycle 41.8 1110 14.7 1.2 1.8

HCGO WT% Yield End Point, oF Gravity, oAPI CCR, wt% Ni + V, wppm

Conventional 24.4 920 18.4 0.25 0.5

Delayed Coking products typically require further downstream hydroprocessing because of hydrogen deficiency and sulfur levels. Figure 1 shows the typical SYDECSM process flow diagram.
Light Ends

Coke Drums

Fractionator Coker Naphtha

Coker Heater

Steam Coker Distillate

Atmospheric or Vacuum Residue

Heavy Coker Gas Oil

SYDEC

SM

Figure 1 Delayed Coking Process Flow Diagram

Environmental Features of SYDECSM Delayed Cokers

Recovery of unconverted blowdown system hydrocarbons Water recovery and reuse, including coke cutting water and process sour water Heater emissions management, such as low NOx burners and selective catalytic reduction 3

Coke handling features for minimizing particulate emissions including enclosed conveyor systems, water sprays and coke pit designs protected from wind Sludge injection facilities to convert refinery sludges

Petroleum Coke (Petcoke) Disposal

Concerns about coke markets and disposal opportunities for fuel grade coke, including shot coke grades, are unfounded for most geographical locations. Although fuel-grade coke is a low value byproduct (compared to distillate transportation fuels), there is significant worldwide trade and demand for fuel coke, because of its high calorific value, low ash and discount pricing relative to coal. This ensures a ready market to power utility stations, cement producers and others. The net price a refiner realizes for fuel-grade petcoke is a function of sulfur levels, coke hardness and transportation costs. There are a number of international corporations that will handle and market petcoke for the refiner. Anode coke is a higher value product produced from low sulfur, low metals feedstocks derived from straight run residues, hydrotreated residues, specialty tar stocks, or solvent deasphalting routes.

Best-in-Class Features of SYDECSM Delayed Coking

The SYDECsm Delayed Coking process features provide economic, safe and robust conversion of residues to lighter products and coke. The following table contains a partial listing of its benchmark features. Table 2 SYDECSM Features Feed/Operating Parameters - Deep vacuum residue feed from heavy crude (1050 oF+ or greater) - Low pressure coking (15 psig or slightly less) - Ultra-low recycle (TPR=1.05) for maximum clean liquid products - Low cycle times 16 to 18 hours: new unit 12 to 14 hours: revamped unit - Coke quench time maximized to minimize drum stresses. Coke Drums - Large size (28 to 32 ft. dia.) for minimum number of modules - Advanced plate chemistry and finishing specifications - Single wall thickness - Hydraulically powered, remotely operated Advanced drum unheading Top: Foster Wheeler hinge system Bottom: Slide valve closed system or Foster Wheeler automated with manual unbolting for sponge cokes - Motor-driven major isolation valves; interlocked isolation valving - High viscosity antifoam (100,000+ cks) with additive nozzle located away from exit vortex - Fatigue resistant mechanical design optimization

Fractionator - Spray chamber wash zone - Flash zone heat shield - Coke screen & coke fines removal circuit - Heater charge pump with coke crushing impeller - On-line water wash capability - Direct recovery of coke condensate/wax tailings into fractionator Heater - Foster Wheeler double fired design - 1 year plus run length with on-line spalling - Low-NOx burners (with selective catalytic reduction if required) - Minimum length transfer line

Coke Dewatering and Handling - High volume maze for fines recovery and/or secondary fines recovery - Full drum volume below chute - Covered conveyors - Drum drain to pit - On-site coke storage for draining/cooling

Slop/Sludge Handling - Sludge injection during coke quench - Slop, wax tailings & coke condensate used as overhead line quench - Overhead line quench spray nozzle using slop oils - Slops dewatering using waste heat

Coke Cutting Blowdown System - Large, high jet pump - Robust blowdown drum internals - Hydraulically operated winches/rotary - Continuous operation to handle coke joint drum PSV discharge - Combination cutting tools - Direct recovery of vent vapors - Free fall arrestor - Interlocked safety system Safety Interlocks - Coke drum inlet isolation valves, switch valve, utility valve and bottom unheading - Coke drum outlet isolation valves and blowdown valves - Coke drum vent, PSV isolation and drum top unheading device - Heater pass flow, fuel pressure and combustion air - Coke cutting system Safety features incorporated during mechanical design - Enclosed shelter for coke cutting operator - Coke drum structure fire protection systems - Coke drum structure emergency egress pathways Execution & Operability Benchmark Factors - Fast project delivery - Fast and safe startups: days not weeks - High on-stream factors: audited at 0.95 for first six months of operation - Long periods between turnarounds: 5 years typical

THE IMPACT OF ADDING SYDECSM DELAYED COKING TO A TYPICAL LOW CONVERSION REFINERY MAKING HIGH SULFUR FUEL OIL The benefits of incorporating SYDECSM Delayed Coking into a HSFO producing refinery are illustrated in the simplified case study described below. The non-residue conversion refinery consists of the following major process units: Crude & Vacuum Unit, Hydrocracker (HCK) of vacuum gas oil, Hydrotreater for diesel and jet production and Catalytic Reformer for gasoline production The non-residue conversion refinery can be seen in Figure 2: Figure 2 BFD: Base Case Refinery Configuration
Sat Gas Plant 9,000 BPSD C5/C6 ISOM 9,000 BPSD NHT 17,000 BPSD Gasoline 24,202 BPSD LPG 8,617 BPSD

CCR 20,000 BPSD

Minas Crude Oil 150,000 BPSD

CRUDE DISTILLATION UNIT 150,000 BPSD

Kero Caustic Treater 19,000 BPSD

Jet 29,381 BPSD

DHT 33,000 BPSD

ULS Diesel 54,587 BPSD

Legend
PRODUCT EXISTING UNIT REVAMP UNIT NEW UNIT VDU 84,000 BPSD HCK 52,000 BPSD

Visbreaker 27,000 BPSD

Fuel Oil 36,057 BPSD

This type of low conversion refinery produces HSFO, which is sold into a declining market. This will, in turn, eventually require the refiner to reduce the price of HSFO so as not to suffer a loss refinery throughput due to lack of HSFO sales. The demand for the light distillate products will require larger volumes of higher priced light crude oil be processed to meet the demand, thus creating surplus volumes of HSFO relative to the local market. Making the situation worse, future environmental regulations will restrict or eliminate the use of HSFO in the refinery and local markets. This refinery case study will show the benefit of exiting the HSFO market and switching to the use of low-priced, heavy crude oils. The basis of this study is the Foster Wheeler SYDECSM delayed coking process as the bottom of the barrel conversion technology.

A linear program (LP) model of the base refinery processing a typical, light, Minas crude was developed. A nominal size of 150,000 BPSD was chosen for the refinery. The comparative benefits were developed through the addition of the SYDECSM coking project to the base HSFO refinery. To take advantage of the light-heavy crude differential typical of these upgrades, the upgraded refinery uses Arab Heavy crude oil. For modeling purposes, the following key product specifications (Table 3) were used. Table 3 Refinery Key Product Specifications
Key Product Specifications Gasoline Specific Gravity 0.72-0.75 RON 95 Sulfur PPM 10 RVP PSI 8.7 Jet A1 Specific Gravity 0.80-0.84 Sulfur PPM 3000 Smoke mm 25 Freeze Point C -47 Diesel Specific Gravity 0.82-.845 Sulfur PPM 10 Cetane Index 45 Fuel Oil Specific Gravity 0.991 max Viscosity at 122 F 360 Sulfur wt% 4.5

To calculate differences in net variable refining margin (i.e., product sales minus feedstock and variable costs), crude oil and refined product prices were based on DOE/EIA data for the week of February 9, 2007 (Table 4). Table 4 Crude & Product Pricing for Evaluation Purposes
Feed and Product Pricing Minas, $/bbl $ 58.65 Arab Hvy, $/bbl $ 48.19 LPG, $/bbl $ 38.88 Gasoline, $/bbl $ 61.83 Jet A1, $/bbl $ 69.72 Diesel, $/bbl $ 66.19 Fuel Oil, $/bbl $ 42.13 Pet.Coke, $/MTON $ 7.00 Sulfur, $/MTON $ 30.00

To the basic HSFO hydrocracking refinery configuration, a SYDECSM process unit was added into the LP. Processing capacity downstream of the residue conversion process unit were added or expanded to accommodate the incremental light streams production. The configuration was set by the requirement to utilize existing capacity before adding new units. Utility systems and offsite requirements were increased for based on the additional demands of the new delayed coker complex. The impact of the delayed coker can be seen below in Figure 3: Figure 3 BFD: Coker Case Refinery Configuration
Sat Gas Plant 11,000 BPSD C5/C6 ISOM 9,000 BPSD NHT 17,000 BPSD CCR 20,000 BPSD C5/C6 ISOM 11,000 BPSD LPG 13,150 BPSD

Arab Hvy Crude 150,000 BPSD

CRUDE DISTILLATION UNIT 150,000 BPSD

Gasoline 40,624 BPSD

NHT 20,000 BPSD CCR 13,000 BPSD

Kero Caustic Treater 13,000 BPSD

Legend
PRODUCT EXISTING UNIT REVAMP UNIT NEW UNIT VDU 84,000 BPSD DCU 43,000 BPSD DHT 43,000 BPSD HCK 52,000 BPSD

Jet 26,795 BPSD

ULS Diesel 64,602 BPSD

Coke 2,283 MTON

A comparison of the base and resulting unit sizes and refinery product yields are given in Tables 5 and 6.

Table 5 Refinery LP Results for Evaluation Purposes Process Units

Configuration Summary, BPSD except as noted y With HCK Base Case + Coker Unit HCK only Complex [CDU] Crude Distillation Unit 150,000 150,000 [VDU] Vacuum Flasher 84,000 84,000 [NHT] Naphtha Hydrotreater 17,000 17,000 Revamp for coker naphtha [NHT] Naphtha Hydrotreater 20,000 New unit [ISOM] C5/C6 Isomerization 9,000 9,000 [ISOM] C5/C6 Isomerization 11,000 New unit [CCR] CCR Reformer 20,000 20,000 [CCR] CCR Reformer 13,000 New unit Kerosene Treater 19,000 19,000 [DHT] Diesel Hydroteater 33,000 43,000 Incremental capacity revamp Visbreaker 27,000 0 [DCU SYDECSM Delayed Coker 43,000 New unit [HCK] Hydrocracker 52,000 52,000 Sulfur Plant, Tonne/day 35 35 Sulfur Plant, Tonne/day 495 New unit Hydrogen Plant, MMSCFD 100 120 Incremental capacity revamp

Table 6 Refinery LP Results for Evaluation Purposes Refined Products

Base Case: HCK only 150,000 150,000 8,617 24,202 29,381 54,587 36,057 33 With HCK + Coker Complex 150,000 150,000 13,150 40,624 26,795 64,602 527 2,283

Refinery Capacity Crude Oil Minas, BPSD Arabian Hvy, BPSD Products LPG, BPSD Gasoline, BPSD Jet, BPSD Diesel, BPSD Fuel Oil, BPSD Sulfur, Tonne/day Coke, Tonne/day

The resultant comparative economic benefits of residue conversion can be seen in Table 7: Table 7 Economic Comparison of Adding Coking to Base Case

Economic Comparison (Basis: 15 Yr Project Life, $m = million) Base Case: With HCK + Delta HCK only Coker Complex Feed Costs, $m/yr 3079 2530 -549 Product Revenues, $m/yr 3155 3220 65 Gross Margin, $/bbl 1.44 13.14 11.70 Operating Costs, $m/yr 82.09 Capital Costs, $m 878.25 Payout Period (no Tax), yrs 1.7 IRR % (no Tax) 45% NPV @ 10% (no Tax) 2334 Payout Period (35% Tax) yrs 2.5 IRR % (35% Tax) 31% NPV @ 10% (35% Tax) 1270

The economic comparisons above indicate the value that SYDECSM Delayed Coking adds to refinery margins and profitability. Foster Wheeler has also investigated the economic benefits of using Visbreaking and Solvent Deasphalting for bottom of the barrel conversion projects. While the IRR may look attractive when employing these processes, they usually do not allow a refiner to exit the HSFO market and the NPV of those projects is significantly lower than for SYDECsm Delayed Coking. Conclusion Residue conversion and reduction of HSFO can be accomplished through many processing routes and the best solution is unique to each refinery. SYDECSM Delayed Coking offers a proven and reliable means to accomplish these goals relatively inexpensively while increasing refining margins and profitability in markets with declining HSFO demand. In the simplified case study presented, SYDECSM Delayed Coking offered high economic returns with a strategic means for a complete exit from the HSFO market.

John D. Elliott, Foster Wheeler USA Corporation, Houston, Texas David A. Wedlake, Foster Wheeler USA Corporation, Houston, Texas
[email protected]; [email protected] 1-281-597-3220; 1-281-597-3193 1-281-597-3230

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