achieving best-in-class performance for light … best-in-class performance for light olefins...
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A World of Solutions
Achieving Best-in-Class Performance for Light Olefins Technology
CB&I
Martin F. Bentham
Presented at
5th Indian Oil Petrochemical Conclave, 4th February 2016
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This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as “achieve”, “forecast”, “plan”, “propose”, “strategy”, “envision”, “hope”, “will”, “continue”, “potential”, “expect”, “believe”, “anticipate”, “project”, “estimate”, “predict”, “intend”, “should”, “could”, “may”, “might”, or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and “Forward-Looking Statements” described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2014, and any updates to those risk factors or “Forward-Looking Statements” included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.
Safe Harbor Statement
Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
Maximum plant size for economy of scale
Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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The SRT VII and quick quench Transfer Line Exchanger
Maximum selectivity
Maintains long run length and high operability
2% to 6% reduction in feedstock consumption
Process Performance - High Selectivity Furnace
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C4/C5 Metathesis Chemistry converts lower value butene and pentene to propylene
Applying the OCT Process increases ethylene and propylene yield by up to 2.5 times over recycle cracking while reducing energy consumption
Process Performance – OCT Process
+
Pentene Ethylene Propylene
+
Butene Ethylene Propylene
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Uses gas turbine exhaust as a source of furnace combustion air
Gas turbine cracking heater integration lowers energy consumption by up to 20%
Process Performance – Gas Turbine Integration
0
1,000
2,000
3,000
4,000
5,000
6,000
Ambient Air Gas Turbine Integration
Specific
Energ
y, M
Mkcal/kg C
2-
5,400 4,300
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Discharge pressure reduced by 50%
Lower Investment with Compressor Reconfiguration
Low Pressure Chilling Train
In successful operation since
2006
Eliminates 15 pieces of equipment
and one casing of the CG
Compressor
Lower operating pressures
inherently increases plant safety
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Lower Investment with Compressor Reconfiguration
-101ºC
-40ºC
40ºC
Conventional
System Binary
System
C1/C2-R
C3-R C3-R
C2-R
C1R/Exp
C1/C2-/C3-R
from a single
machine
-135ºC
Tertiary
System
Binary and Tertiary Refrigeration
In operation or under design in plants producing over 12 million tons per year of ethylene
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Lower Investment with Compressor Reconfiguration
Lower CAPEX
7% reduction in ISBL investment
37 equipment pieces eliminated
40% reduction in compressor/turbine casing
Conventional Latest Technology
CG compressor & driver 4 3
C3- refrig compressor & driver 2 ―
C2- refrig compressor & driver 2 ―
C1 refrig or expander 2 to8 ―
Tertiary refrig compressor & driver ― 3
Total 10 to 16 6
Low Pressure Chill Train and Tertiary Refrigeration
Improved reliability and lower
maintenance cost
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Ethane 27%
Propane 7%
Butane 4%
Naphtha 55%
Gas Oil 5%
Others 2%
2005
Ethane 33%
Propane 8%
Butane 4%
Naphtha 50%
Gas Oil 3%
Others 2%
2010
By-product Flexibility – Changing Feedstock Slate
Lower cost ethane feed is replacing naphtha as source of feed to steam crackers
Worldwide shale gas reserves will increase this shift
This will reduce the supply of C3 and heavier products opening up the need for greater by-product flexibility in both new and existing plants
Ethane 35%
Propane
9% Butane 5%
Naphtha
45%
Gas Oil 3%
2015
Other 3%
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By-product Flexibility – Propylene Shortfall
The 10% shift from naphtha to ethane feed reduces available propylene production by 7.5 million MTA
Propylene demand is expected to increase by 25 million MTA by 2019
New range of feeds for Olefins Conversion Technology
+
Butene Ethylene Propylene
Refinery, MTO and steam cracker C5s
Ethylene to propylene
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By-product Flexibility – Ethylene to Propylene
Ethylene Dimerization plus OCT can offset propylene shortfall economically since propylene is of higher value than ethylene
Propylene can be produced by ethane crackers using this ethane to propylene route
Ethane and naphtha crackers can produce any P/E ratio all the way to 100% propylene
Average value 1.21
North America – Propylene/Ethylene Price Ratio
Price data USGC Spot by ICIS
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By-product Flexibility – C4/C5 Metathesis
C4 raffinate and C5s are typically recycle cracked
OCT/cracker integration using C4 raffinate will:
Constant Propylene
120
140
160
180
200
Be
nze
ne
, kta
Cra
ck
er
Cra
ck
er
& O
CT
400
500
600
700
800
Pyg
as, k
ta
Cra
ck
er
Cra
ck
er
& O
CT
-38%
+25%
500
600
700
800
900
Pro
pyl
en
e, k
ta
Increased Propylene
Cra
ck
er
Cra
ck
er
& O
CT
+25%
Increase propylene
Increase benzene and decrease pygas at constant propylene
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By-product Flexibility – C4/C5 Metathesis
Steam cracker C5s can feed the OCT to produce additional propylene
Ethylene + propylene yield increases by 2.5 times when compared to recycle cracking the C5s
Refinery C5s can also be used to supplement C5s from cracker
500
600
700
800
900
1000
Pro
pyl
en
e ,k
ta
Cra
cke
r
Cra
cke
r +
C4 O
CT
Cra
cke
r +
C4 /
C5
Propylene Production
+25%
+35%
1000
3000
5000
Kca
l/kg
C2-+
C3-
Cra
cke
r
OC
T
Lower Energy Consumption for C5s
-55%
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Safety is our culture
Focus is on safety from design to operation
Internal and external systems in place to facilitate safety across the life cycle of plant Safety bulletins
Ongoing training programs
Extensive data base available to all licensee
Enhanced Safety
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Environmental Performance – NOx Reduction
Reduces burner NOx by 90%
NH3 distribution insured by CFD modeling
Experience in five locations
Successful experience with firebox decoking
Allows fireside and process side modeling
Ensures proper burner placement and configuration
NOx reduction is a key criteria in securing the necessary permits to expand existing or build new plants
• Delayed combustion
• Flue gas recirculation
• Reduces NOx from 100ppm to 30ppm
NOx Reduction
Improved Burners
Virtual Furnace Using CFD
Selective Catalytic Reduction
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Producing propylene via OCT reduces green house gas commissions
OCT reactions are exothermic
Only route to propylene that does not require energy input to the reaction step
Separation costs are low since product recovery is not energy intensive
No H2 or methane is present
Separation is between carbon numbers and not between olefin and paraffin
Gas turbine/heater integration reduces energy consumption by 20% and reduces NOx by 15%
Environmental Performance – Lower CO2
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Increasing Operating Margin with High Reliability
Licensee Survey results constantly show high on stream factor & extended time between turnarounds
Year Total Survey Ethylene Capacity MTA
2002 21 Million
2007 20 Million
2012 30 Million
Time Between Turnaround Months
Average Maximum
36 96
42 84
48 120
On Stream Time
97.7%
98.0%
98.9%
Multiple plants have no shutdown during
survey periods
Steadily improving performance due to skilled
operations, strong maintenance, new technology and
continuing technical service
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Economy of Scale
First >1000 kta plant awarded to
CB&I in 1993
Largest volumetric cracker on USGC, a 950 kta liquid cracker
awarded to CB&I
CB&I currently designing a 1420 kta naphtha cracker – largest volumetric cracker licensed to
date, equivalent to a 2150 ethane cracker
Plants designed by CB&I have historically lead the growth
in maximum capacity
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Economy of Scale
Today’s limit is 2300 kta for ethane feed and 2000 kta for naphtha feed
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Achieving Best in Class Performance
Process Performance
Low investment cost
By-product Flexibility
Enhanced Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
State-of-the-Art Light Olefins Technology
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Lower Cost Expansion
8 million kta of
ethylene capacity
Mixed
Refrigeration OCT Integration
Average expansion 44% above
nameplate with maximum 132%
above nameplate
43 projects
Maximize Profit Across the Plant Life Cycle
Ethylene Plant Expansions
New technology features reduce investment and shutdown time while increasing reliability
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Lower Cost Expansion – Mixed Refrigeration
Expansions using conventional technology typically re-rotor or replace all existing refrigeration compressors
Using binary or tertiary refrigeration system, adds only a single new compressor
Binary
System Tertiary
System
C1/C2-R
C3-R
C1/C2-/C3-R
from a single
machine
-101ºC
-40ºC
40ºC
Conventional
System
C3-R
C2-R
C1R/Exp -135ºC
Results in lower investment cost
Downtime decreases since new refrigeration system can be
added during plant operation and only tied in at shutdown
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Lower Plant Investment at Increased Severity
Integration of ethylene plant and OCT can decrease investment for the expansion while holding the propylene-ethylene product ratio constant
Steam cracker without OCT at moderate or low severity
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0.84
0.96 0.99 0.94
1.04
0.62 0.71
0.99 1.07
0.49
Steam cracker at increased severity with OCT
Lower throughput in ethylene plant lowers
expansion investment enough to more than offset
investment in OCT
Lower Plant Investment at Increased Severity
Integration of ethylene plant and OCT can decrease investment for the expansion
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Achieving Best in Class Performance – Summary
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant
expansions
• High yield
• Low energy consumption
• Low pressure chilling train
• Mixed refrigeration
• OCT/Cracker integration
• C4/C5 OCT
• C2- Dimerization
• Inherently safer design
• Super-low NOx burner
• SCR
• Energy-neutral propylene
production
• Gas turbine integration
• 98.9% on stream factor
• 4-5 years between turnaround
• Mixed refrigeration
• OCT Integration
• 2300 kta for C2 feed
• 2000 kta for liquid feed
State-of-the-Art Light Olefins Technology
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Achieving Best in Class Performance – Summary
Process Performance
Low investment cost
By-product Flexibility
Enhanced Safety and Environmental Performance
Highest Reliability
Maximum plant size for economy of scale
Lower cost plant expansions
• High yield
• Low energy consumption
• Low pressure chilling train
• Mixed refrigeration
• OCT/Cracker integration
• 98.9% on stream factor
• 4-5 years between turnaround
• Mixed refrigeration
• OCT Integration
• 2300 kta for C2 feed
• 2000 kta for liquid feed
State-of-the-Art Light Olefins Technology
Maximizing Profitability Across
Plant Life Cycle
• C4/C5 OCT
• C2- Dimerization
• Inherently safer design
• Super-low NOx burner
• SCR
• Energy-neutral propylene
production
• Gas turbine integration