kbr olefins technology : responding to the changing...

©2014 KBR, Inc. All Rights Reserved 1

KBR Olefins Technology : Responding to the changing

market needs of tomorrow

Sourabh Mukherjee Indian Petrochem - 2014


Steam Cracker

Hydrocarbon

Feed

Ethylene

Co-Products

• Hydrogen

• Methane

• Propylene

• C4’s

• PFO

• Etc..

Utilities Waste

Operations &

Maintenance

Ethylene Complex

Traditional focus

Potential to drive

Technology

Selection


Does Ethylene Selectivity Matter?


Ethylene Complex Economics (Ethane)

Steam Cracker

Ethane

Feed

Ethylene

Co-Products

Utilities Waste

Operations &

Maintenance

• Hydrogen

• Methane

• Propylene

• C4’s

• PFO

• Etc..

Cost

Ethane Feed 380 $/MT

Utilities 98 $/MT Ethylene

Operations &

Maintenance

53 $/MT Ethylene

Depreciation + ROC 250 $/MT Ethylene

Revenue

Ethylene 1000 $/MT

Co-Products Note 1 $/MT

Note 1: Dependent upon co-product recovery


Example 1: US Gulf Coast Cracker Grassroots Cracker

Location: US Gulf Coast

Feedstock: Ethane (US Shale Gas)

Products:

-1000 KTA Ethylene

-C3+ Stream (Sell)

-Fuel Oil

-Fuel Gas

Overall Material Balance

Feed /

Product

77% Yield

(KTA)

80% Yield

(KTA)

Ethane 1287 1250

Ethylene 1000 1000

Fuel Gas 180 163

Mix C3+ 102 85

Fuel Oil 5 2

C3+

Ethane

Feed

Tail Gas

Ethylene

Fuel Oil


Example 1: US Gulf Coast Economics

Lower selectivity = ~$5.6 MM USD/yr Advantage

Revenue ($MM USD)

Products 77% Yield 80% Yield

Ethylene 1,000 1,000

Fuel Gas 27 24

Mix C3+ 103 87

Fuel Oil 1 0.4

Sub-Total 1,131 1,111.4

Cost ($MM USD)

Category 77% Yield 80% Yield

Ethane Feed 489 475

Utilities 98 98

O&M 53 53

Depreciation + ROC 250 250

Sub-Total 890 876

Margin ($MM USD)


Revenue 1,131 1,111.4

Cost 890 876

Total Margin 241 235.4


Example 2: CIS Region Cracker Grassroots Cracker

Location: CIS Region

Feedstock: Ethane (Gas Plant)

Products:

-1000 KTA Ethylene

-C3+ Stream (Fuel)

-Fuel Oil

-Fuel Gas


Feed /

Product

77% Yield

(KTA)

80% Yield

(KTA)

Ethane 1287 1250

Ethylene 1000 1000

Fuel Gas 180 163

Mix C3+ 102 85

Fuel Oil 5 2

C3+

Ethane

Feed

Tail Gas

Ethylene

Fuel Oil


Example 2: CIS Region Economics

Higher selectivity = ~$6.3 MM USD/yr Advantage

Revenue ($MM USD)


Ethylene 1,000 1,000

Fuel Gas 27 24

Mix C3+ 23 19

Fuel Oil 1 0.4

Sub-Total 1,051 1,043.4

Cost ($MM USD)


Ethane Feed 489 475

Utilities 98 98

O&M 53 53


Sub-Total 890 876

Margin ($MM USD)


Revenue 1,051 1,043.3

Cost 890 876




Feed /

Product

77% Yield

(KTA)

80% Yield

(KTA)

Ethane 1200 1200

Ethylene 932 960

Fuel Gas 168 156

Mix C3+ 95 82

Fuel Oil 4 2

Example 3: CIS Region Cracker (Fixed Feed) Grassroots Cracker

Location: CIS Region

Feedstock:

- 1200 KTA Ethane (Gas Plant)

Products:

-Ethylene

-C3+ Stream (Use for Fuel)

-Fuel Oil

-Fuel Gas

C3+

Ethane

Feed

Tail Gas

Ethylene

Fuel Oil


Example 3: CIS Region Economics (Fixed FEED)

Higher selectivity = ~$22.3 MM USD/yr Advantage

Revenue ($MM USD)


Ethylene 932 960

Fuel Gas 25 23

Mix C3+ 21 18

Fuel Oil 1 0.3

Sub-Total 979 1,001.3

Cost ($MM USD)


Ethane Feed 456 456

Utilities 91 91

O&M 49 49


Sub-Total 829 829

Margin ($MM USD)


Revenue 979 1,001.3

Cost 829 829



How Can Technology Impact Selectivity?

0 0.1 0.2 0.3 0.4 0.5 0.6 0

10

20

Residence Time (sec))

GAS OIL NAPHTHA

BUTANE

PROPANE

ETHANE

Re

lati

ve P

erc

en

t

Yie

ld I

mp

rove

me

nt

Residence Time Effect on Ethylene Yields

More Ethylene More Co-Products


SC-1 SC-2 SC-4

Furnace Coil Portfolio

How does KBR Address Residence Time?

0 0.1 0.2 0.3 0.4 0.5 0.6 0

10

20

Residence Time (sec))

GAS OIL NAPHTHA

BUTANE

PROPANE

ETHANE

Re

lati

ve P

erc

en

t

Yie

ld I

mp

rove

me

nt


SC-1 SC-4

Serpentine-Type E.g., “W-Coil”

(~ 0.35-1.0 sec)

Single Pass Straight Tube

(~ 0.08 - 0.12 sec)

Two-Pass “U-Coil”

(~ 0.20 - 0.25 sec)

SC-2

# of Furnaces 209 49 207

KBR Furnace Portfolio & Experience


KBR & competitors

KBR has BROADEST Technology Portfolio

Coil Type Residence

Time (sec)

KBR Competitors

W type 0.4 SC-4 Yes

U Type 0.2 SC-2 Yes

One pass 0.1 SC-1 No


Conclusions

Selectivity is important and should be a key

decision criteria

“Duplicate” grassroots designs might miss

economic opportunity

Critical Factors for Coil Technology Selection:

– Availability and Constraints on Feeds

– Demands and Constraints on Products


Steam Cracking Around the World

North America:

Shale Gas

Russia/CIS:

LPG

Refinery Integration

Naphtha

Asia:

Naphtha

Heavy Liquids Middle East:

Ethane

Refinery Integration

Liquids

The Heavier the Hydrocarbon Feed

the more complicated the

economics

KBR Collaborates with Client to determine best

configuration


KBR Olefins Technology Offerings

What Feeds Features

SCORE™

(Steam Cracking)

Ethane thru Gas Oil • Residence time ~0.08 – 1.0 sec

• Low CAPEX

• Superior Performance

• Offered via Agreement with

ExxonMobil

K-COTTM

(Catalytic Olefins)

Olefinic C4-C10 • P/E ratio ~ 2/1

• Gasoline by-product >50% aromatics

• Recycle C4-C6 NA to extinction without

additional treating

Paraffinic naphtha,

light distillates

• P/E ratio ~ 1/1

• Recycle C4s/C5s without additional

treating

Non-traditional • High olefin yields from methanol,

ethanol and other oxygenates and

MTO/MTP and FT by-products


K-COTTM Overview

Catalytic cracking of light olefinic and/or paraffinic feeds

High propylene yields, with ethylene and aromatic-rich gasoline byproducts

• Typical P/E ratio = 2:1 for olefin-rich feed

• Typical P/E ratio = 1:1 for straight run naphtha

Use of custom formulation of ZSM-5 catalysts

Utilizes fluidized reactors (FCC)

• Over 60 years of KBR experience in FCC

Product separation similar to ethylene plants with trace impurity removal to produce polymer grade products

• Over 60 years of KBR experience in Ethylene



Typical Refinery and Steam Cracker

Crude

Oil

Naphtha

Gasoline

Distillate

Jet / Kero

Fuel Oil

Ethylene

Propylene

Butadiene

PyGas

FCC Isom

Hydrotreaters CDU

De-

asphalting Coker

Others

Hot Section Cold Section



Typical Refinery and Steam Cracker

FCC Isom

Hydrotreaters CDU

De-

asphalting Coker

Others

Hot Section Cold Section

Crude

Oil

Naphtha

Gasoline

Distillate

Jet / Kero

Fuel Oil

Ethylene

Propylene

Butadiene

PyGas

Catalytic Olefins

Recovery

Flexibility is the KEY


Flexible and Scalable More Profit

Liquid Recycle Streams: •C4 streams

-C4 Raf 1

-C4 Raf 2

-C4 Raf 3

-Butane

•C5+ streams -Raw C5+

-1x Hydro

-2x Hydro

->Buy More from Outside!

Consider Refinery Streams: •Refinery C4’s

•FCC Naphtha

•Coker Naphtha

•Visbreaker Naphtha

->Excellent Yields!

Add Conventional Liquid Steam

Cracker Feeds (eg Naphtha)

->Higher P/E

-> More BTX

Consider Other Streams: •Alcohols

-MeOH

-EtOH

-Etc

•Other Oxygenates

•FT, MTO/MTP By-Products

->Excellent Yields!

Can be run in Single Converter



K-COTTM - Separation

Product treatment and separation follow ethylene plant technology

– Compression

– Acid gas removal and drying

– Separation and fractionation to chemical or polymer grade products

Proprietary expertise for trace impurities removal

C4s and C5s can be recycled to reactor with no further treatment

All proven technology

R

E

C

O

V

E

R

Y

Ethylene

Propylene

Tail gas

BTX gasoline

Reactor

Effluent



Liquid crackers, looking to upgrade C4, C5,

non-aromatic gasoline – recycle to K-COTTM

Refiners with excess naphtha (straight run or

cracked) – upgrade to olefins, especially C3

Integrated refinery / petrochemical complexes

looking to improve overall flexibility and value

upgrade

Upgrade by-products from FT/CTL/MTO/MTP

facilities

Potential Applications for K-COTTM



Naphtha HDS C

rud

e D

isti

lla

tio

n

Coker

Reformer

COKE

DIESEL

GASOLINE

FUEL OIL

Ultra Low Sulfur

Diesel Hydro De-sulfurizer V

ac

uu

m

PROPYLENE MIXED BUTENES LIGHT NAPHTHA HEAVY NAPHTHA KEROSENE LCO

CRUDE

FC

C

COKER LN

Refinery Configuration



Liquid Crackers - “Marginal Producers”

Liquid Feed

• Liquid Crackers have become the “Marginal Ethylene Producers” but comprise

50% of the world’s capacity

• Liquid Crackers Forecasted to Run at Lower Ethylene Operating Rates

• How Can Liquid Crackers Improve Cost of Ethylene (COE) and Profits in this

Environment? ©2014 KBR, Inc. All Rights Reserved 26


R

E

C

O

V

E

R

Y

Recycle Converter

Caustic/

Drying

Tail gas

Ethylene

Propylene

Butadiene

C4’s

C5+ Pygas

Fuel oil Ethane/Propane Recycle

Feed

PG

Water

Wash

HP

Steam

Exch

Pyrolysis

Furnaces

Oil

Quench

Typical Ethylene Plant

P

G

Caustic/

Drying

R

E

C

O

V

E

R

Y



Recycle Converter

P

G

Caustic/

Drying

Tail gas

Ethylene

Propylene

Butadiene

C6+ Pygas

Fuel oil

Ethane/Propane Recycle

Naphtha

Feed

Water

Wash

HP

Steam

Exch

Pyrolysis

Furnaces

Oil

Quench

C4/C5/C6NA from

Ethylene Plant

Fuel

Oil

BTX-Gasoline

C3 &

Lighter

Converter

O2 Reactor

Deprop / Dehex

R

E

C

O

V

E

R

Y



C4 Raff 1 C5's C6NA All C4 Raff 1 C5's C6NA All

Steam Cracking Catalytic Olefins

Since Jan 06 -9 10 0 1 20 30 20 69

Since Jan 08 -10 9 -1 -2 18 26 19 63

Since Jan 11 -14 9 0 -4 18 26 20 65

-20

-10

0

10

20

30

40

50

60

70

80

$ /

Eth

ylen

e To

nNaphtha Cracker: Recycle vs. Sell


Based on historical price data


Combined Olefins Process

R

E

C

O

V

E

R

Y

Tail gas

Ethylene

Propylene

Raw C4s

BTX-gasoline

Fuel oil

Fresh Feeds

Recycles

Recycles

Pyrolysis

K-COTTM



K-COTTM Advantages

Naphtha feeds converted to higher yields of olefins, especially propylene

– P/E ratio of ~1/1

Olefin-rich feeds converted to very high yields of propylene, with significant ethylene and aromatics byproducts

– P/E ratio of ~2/1

Unmatched feed flexibility

Very attractive economics

Grassroots and Revamp opportunities

Catalytic Olefins Commercial

Demonstration Unit, Ulsan, South Korea

Oct. 2010 Startup


THANK YOU for your Kind Attention! Questions?

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