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Topping Refinery Feasibility AnalysisPreliminary Material Consideration for:
21 Feb 2013Oral Report #1
PUNIANIP A R T N E R S
Engineering solutions leader insourcing economically-efficient
processes for mission-criticalconsumer chemical products
Simulation for University of California,Berkeley Chemical Engineering 160
Arjan S PunianiSimon Tam
Nicholas Borjian
Billy Guan
| Team Leader-elect
| Lieutenant
| Support Staff
| Support Staff
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Processingiversion Distribution
PROBLEMFORMULATION:
Techno-economicAnalysis of TopperRefinery to Cost-Effectively Meet
Local DieselDemand
XOM ANS11U crudeoutput is ~460kBD.Preliminary dieselprocessing requires atleast 7kBD to satisfyproduction goal.
Topping refineryproduces 1kBD of CI-55diesel withoutsignificant TAPS pipingloss.
Natural gas integratedinto power. Dieseldiverted to localdemand. Lighter alkanesre-injected to TAPS.PUNIANI
PA
R
TN
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Remote production in ExxonMobils Alaskan facilities must
service local, off-road diesel demand (applications includeindustrial operations, mining, and barges). Researchestimates from previous discussions suggest a 1kBD objective.
We present preliminary findings for a proposed topper facilitythat processes the medium-grade crude ANS from the Trans-Alaska Pipeline System (TAPS) with a output capacity of 1kBD.
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Oenao
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What is minimumprocess invasiveness of
proposed topper roll-out?We need to understandhow coupled our site is to
the overall crudeproduction process.
Key Take-Away: In otherwords, how much oftoppers functions arecontributing to the overallstorage and charging
phase of the processstream?
Typical oil & gassupply-chain
Third-Party Contractor
Operating SubsidiaryPartnership Status Possibilities
Pro: Can pool resources from parent company Con: process and discipline typically conform to parent companys
culturerequire novel, creative thinking to solve next-gen engineeringproblems, which cant be cultivated in-house
Pro: Creative sovereignty (input parameters) at discretion of contractoronly final output matters; extensive experience in formulating robustsolutions suite
Con:Time to baseline knowledge function of complexity
ENDGAME ANALYSIS: A solutionthrough Puniani Partners, asopposed to mobilization of ahomegrown solution, is a revenue-maximizing enterprise (no changesto capital structure to finance
project, reallocation of managerialintellectual capital, etc.)
How Puniani Partners fits into the mix and why it makes sense
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ExxonMobil Tag: ANS11UTotal Output (bbl/day)460,000
LocationAlaska, USA API Gravity30.9-32.1Sulfur wt%0.958% AppearanceBrown-black
XOM outputs more than 130kBD of ANS11U. We detail the standard assay below:
Butane andlighter
3%
Lt. Naphtha8%
Hvy Naphtha14%
Kerosene14%
Diesel16%
Vacuum GasOil
27%
VacuumResidue
18%
Alaska North Slope (ANS11U): Feedstock Analysis
The Trans-Alaska PipelineSystem (TAPS) is an800mi+ crude-oilconveyance connecting
Prudhoe Bay to Valdez.Despite a difficult,isolated terrain in near-inhospitable conditions,crude temperatures areassumed constant: ~120F.
T
APS
10cm FiberglassInsulation
48in I.D.
Heavy Fuel Oils Residual distillation product
(atmospheric tower bottoms)classified as #6 diesel.
Used in marine industry(Bunker C Fuel) and verylarge diesel engines
ANS HFOs amongst lightestin the industry (API ~20), butheavy sulfur content posesunique engineeringproblems and limitsapplication potential withoutconcomitant capex spend
Low asphatenes/heavymetals content introducespossibility of entering bunkerfuel market, FCC coker unitfeedstock market, andvarious diesel yield-enhancement schemes
For Today: Ignore potential asdiesel yield enhancement
Volatiles
Kerosene
Colorless gas, which, aftercatalytic reforming,becomes high-octanemotor gasoline.[Processing capex cannot be
justified for regionsolution:ship to Canada as diluent fortar sands oil transportation]
Diesel
Thin, light-colored cooking,lamp, and jetfuel.[ D ep en d i n g o n
prevailing marketconditions, can opt
to blend kerosene
with diesel fuels
product suite tomaximize output]tmospheric gas oil (AGO),aka fuel grade #4 diesel.Technical specs demandCI-55 grade diesel, whichcommands additionaldownstream processingunits in the proposedrefinery. BP: [400-530F]
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Details on target fuel: diesel of grade (cetane index) 55
365,000bbl per annum
PRODUCTION GOALPetrol mixes (e.g. crude) can possess 102-105 componentsneithernecessary nor desirable to model and separate every single pure
components. Once we decide upon abstraction procedure,downstream ops will focus on attaining desired grade
PRIMARYMETHODSOFTHROTTLING-UP CI
Using cetane improver
chemistry (2-ethylhexyl nitrate), one canachieve higher cetanewithout correspondingloss in power and fuel
efficiencyperformance.
Use DC train to attain a
certainAPI gravityrating: 36.3. Fuel
economy suffers ofrefining-based cetaneenhancement. Classify
fuel via distillationprofile.
Chemical Back-EndRefinery Stage
1 2
Governingcomposition ofincomingcrudeapproximatedas:
Please refer to appendix for governing
Simulation Integration Plan
Rather than register pure constituents into ASPEN,our team opted for integrated petroleum simulationsuite in ASPEN.
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Process Design Algorithm whats still on the Puniani Partners plate
Establish Product Definition
Process Flow Diagram Development
Material & Energy Balances
Characterizing Overall Financial Profile
Deep Reflection & Continuous Reiteration
Progress
Identification of local natural gas demand and other alternatives toflaring
Recycle streams, thermodynamically-rigorous separationtechnologies, etc., require input to our simulacrum!
Identifying sinks and sources of cash flow, whilst respecting green agenda Optimizing tradeoff between profitability and sustainability represents
largest challenge, though current rendition focuses on
Explicit characterization of product specifications and grade Define major analytical requirements Establish market size to gauge profitability potentialThe focus oftodayspresentation
ishighlightedhere:
Appropriate synthetic technology selection is primary objective Comprehensive design frontier optimizes each sub-process,maximizing likelihood of overall design optimality
Defining all relevant materialsreagents & consumables Sizing reactors and equipment and reconciling with hand calculations Next steps: Rigorous incorporation of appropriate utilities and labor
components to contribute to rapid prototyping and time-to-market
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A topper is easy tointegrate
Interested in sating off-road diesel demandmeans focus on gasoilsand straight-run (SR)fuel exclusively.
Capital light execution,since need not concernwith catalyticreformation, etc. (Cf.simplification right)
FURTHER STUDYTests are scheduled toassess the relativeeconomic value betweenenhanced dieselextraction from SR fuels/HGOs and the yieldresulting from adifferential step increaseof the tapped crude
Crude
Tap
AtmosphericResidue SR fuels
Dieselsasoil Gasoils
NapthaLPG
Jet/KeroGasoline
NapthaLPG
Jet/KeroGasolineCrude-
Distillation
LPG
Light Naphtha
HeavyNaphtha
Kerosin
Target
ReturnedtoPipeline
To sate the local off-road diesel demand, our proposed process demands thehighly-separable heavy components (tars, residues, and diesel gasoil) of the crude
oil spectrum. Definitions of SR fuels/AMO/heavy distillates vary, so our team
requires Project Sponsor specification.nSm
A topper is the simplesttype of refinery
50,000ft view of target process and major considerations
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UtilitiesProcess Water
Well-Head
DownStreamTrans-Alaskan Pipeline
ANS11U Tap Degraded Crude
Diesel
Desalinization
Crude-Distillation
UtilitiesElectricitySteamFuel
SO2Control[AmineTreatment]
Natural Gas PowerCo-Generation
UtilitiesElectricitySteam
Raw MaterialsAmine
Diesel Hydro-desulfurization
PurificationTrain
EnhancementSuite
H2S
UtilitiesElectricitySteamRaw Materials*Hydrogen
UtilitiesElectricitySteamFuel
Raw MaterialsValue-generating additives
UtilitiesElectricity
WastewaterTreatment
UtilitiesElectricitySteam
CO2
HGO Diesel Pathway (Tentative)
BlockFlow
DiagramBlueprints
PM ControlElectrostaticPrecipitation
Sour GasTreatment
H2S
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A topper is easy tointegrate
Exceedingly impracticalto simulate on a reactionbasis (e.g. usingstoichiometry ofcomponents)
Instead, treat crude as aspectrum, withdistinctions made acrossBPs rather than analmost infinite numberof discrete hydrocarbons
Crude oils n-Alkanedistribution is incrediblysparse
Theoretical underpinnings of simulation crude-distillation
Crude oil compositionapproximated by the trueboiling point distillationcurve (TBP), which can becalculated in ASPEN viaPetroleum with EnglishUnits > Assay Data
Analysis.Temperature,F
1500
-100 B CA
EFV
Volume Percent Vaporized
TBP
ASPENCommands
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To assist with the estimation of capital costs, we turn to our comparables universe and single outnotable topper refineries that are strongly aligned with our own proposed roll-out.C A S ESTUDY
Economic Analysis Comparable Valuation
Joint Venture: MDU ResourcesCalumet SpecialtyProducts PartnersApprox. Annual Revenues
$234mnFootprint318 acresLocation
N. Dakota, USA
Order of Magnitude Estimates
Crude ProcessedBakken CrudeHeadcount
~100
At the current stage of our designprocess, we utilize a Class 5 Capital Cost
estimatespecifically, the scalingfunction, which is based on the knowncost of an earlier plant equipped with thesame technology for producing a fairlysimilar product suite.
The Dakota Prairie refinery cost an est.$280mn, and when using our lower limitof 7kBD crude processed (compared totheir 20kBD), we estimate a facility costof:
$149mn
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Remaining Process Loose-ends
1 HydrogenProductionRaw water is required tocompensate for steam/coolingstream losses, and, when
treated, is a source of DI water.For water demands of
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Summary of Assumption Brief Description of Rationale
The physical properties of the crude oilcomponents do not change over transit.Includes the 120F crude tap. [Source: XOMANS11U spec sheet, public domain]
Use the two-stage process common to mostrefineries, where the PetroFrac
Assume plant is out of commission 15% of
the yearso we concentrate the load acrossthe remaining days of the year
For economic analysis, we assumed perfectcorrespondence with our proposal and therefinery.
Assume: significant transient heat transfers for crudelocalized entirely at wellhead. For well-maintained
transport pipeline, reasonable to expect consistency ofcrude spectrum along all points of TAPS. Insulation and
generators ensure constancy of T.
Major assumptions include VLE existence at everystage. No pressure differential exists across the
fractionation unit, as well.
If we simply distribute 55,000BD across the remaining310d, it added an extra 177.419BD.
Similar risk profile, product suite, and technology used.
Assay Consistency
Atmospheric Tower Fractionation
Operating Days
Dakota Prairie is a Perfect Comparable
We hope to interface with the Project Sponsor Team frequently to assess operating validity of above
Major Assumptions Tracker
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Possible turbulence? -- compliance and the regulatory environment
CO2 Cap: 8hravg. of10mg/m3 nomore thanonce a year
ParticulatesCap: forPM-10, limitover 24hravg. cannotexceed 150g/m3
Flash Pointmin.: 100F(summer),125F (winter)
Max carbonresidues:0.15wt%(summer),0.35wt%(winter)
0.01wt% maxof ash
80 g/m3annual avg. 24hr avg.of 365 not to
be exceededmore thanonce per yr.
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APPENDIX
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PUNIANIP A R T N E R S
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ANS: Compendium of Physical Properties [1/2]
Characteristics
WOgn
A Nm
A
Alaska, USA. Line sample off TAPSjuncture near Petrostar Refinery inValdez (19 Mar 2002)
ANS (govt.), ANS11U (XOM)
Brown-black, light, little odor, fineblack particulates disperseduniformly throughout liquid
Source: EPA File Docket 600 R03 702
30.89
%Ev = (2.86+0.045T) lnt
Calculated APIGravity
Calculated Quantities
Equation for Predicting Evaporation
%Ev=[wt%]evaporated;T=surfacetemp.[C];t=>me[minutes]
Weathering (wt%) Sulfur (wt%)0 1.11
10.0 1.20
22.5 1.38
30.5 1.50
Sulfur Content
Weathering (wt%) Hydration (wt%)0
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ANS: Compendium of Physical Properties [2/2]
PUNIANIP A R T N E R S APPENDIX
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Source: EPA File Docket 600 R03 702
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Proposed Process Block Diagram Detailed Unit Ops
PUNIANIP A R T N E R S APPENDIX
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Volatiles-based CogenerationAmine Treatment
An amine treatment is the industry standard of sweetening.Our primary objective is establishing proof-by-concept
RationaleAn amine treatment
Rationale
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Proposed Process Block Diagram Detail: Hydro-desulfurization
PUNIANIP A R T N E R S APPENDIX
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Our company has recently participated in the development of a number of new/expanded oil fields. In some cases, the production facilities are in remote
locations, and it has been determined that there is a need for a facilities toproduce 1000 B/D of off-road diesel fuel for local use in industrial operations,
mining, and barges near these locations. Your team has been asked to designthe necessary facilities and estimate the capital and operating costs for these
facilities. These topping refineries will be located in a remote location near
existing crude oil pipelines. The refineries will process A) ANS (Alaska NorthSlope) crude in northern Alaska or B) Tengiz crude in Kazakhstan. The refinery
can take crude from the pipeline, process the crude to produce the required
diesel fuel, and re-inject the residual oil back into the pipeline. The dieselproduced must have a minimum cetane index of 55. There is very limited
infrastructure at either site so everything required to support the sitesoperations must be provided. There is local power that is not reliable and raw
water is available. Environmental considerations will also affect the design.
Distribution will by trucks. Determine what facilities will be required and thecapital and operating costs of these facilities. Estimate manning requirements,
utilities, chemicals, and catalyst needs.
Reiteration of Original Problem Statement