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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
A Chevron and Lummus Technologies Joint Venture
Jan Steegstra
European Fuels Conference Paris March15, 2012
LC-MAX Upgrading Residual Oil Products for the
Maximum Production of Diesel
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Chevron’s refining network can process over 600,000 barrels of heavy crude and residuum per day n In the United States, our El Segundo Refinery,
integrated with our nearby heavy oil production, continues to upgrade its heavy oil processing capacity and flexibility.
n In South Korea, Chevron is a 50 percent partner in the 840,000 barrel-per-day GS Caltex Yeosu Refinery complex that is currently expanding its heavy oil capacity.
n And our 350,000 barrel-per-day Pascagoula, Mississippi, refinery is one of the world’s most advanced heavy oil processing facilities.
2 A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Chevron’s Heavy Oil Production in California
n San Joaquin Valley
n Headquarters: Bakersfield, California
n Manages oil and gas production operations in 8 area fields, with a focus on heavy oil.
n Largest producer in the state of California.
n Leaders in the application of new technology to enhance recovery operations, particularly around the use of steam.
n Home to Chevron’s global Heavy Oil Center of Excellence.
3 A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Types of Crude Oil
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Arab XL Arab M Maya Boscan
8% 19%
31%
49% 27%
29%
30%
33%
26%
23%
19%
13%
37% 27%
19%
5%
LPG
Naphtha
K + D
VGO
VR
A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Global Heavy Oil Resources
China Mexico
Colombia
UK
Iran
Indonesia
Brazil Angola
Argentina
USA Lower 48
Venezuela
Trinidad India
Canada
1 Billion Barrels in Place
Alaska
Ecuador Peru
Madagascar
Nigeria Oman Saudi Arabia
Australia
Russia
Kuwait Egypt Jordan
E. Europe Italy
Netherlands
Turkey
10 Billion 100 Billion > 1 Trillion
Oil-in-Place
© 2009 Chevron Corporation 5
Oil Production
Source: Chevron
55% 15%
30%
9%
91%
Light + Medium
Heavy
Extra Heavy + Bitumen
Light + Medium
Heavy + Extra Heavy + Bitumen
A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Future Downstream Challenges n Available crude oils are
becoming heavier with higher contaminants
n Diesel demand growing n Environmental concerns
make product specifications more difficult
n Very heavy crudes favor upgraders close to fields
n Bio-renewables, F-T wax (from GTL plants) need upgrading
A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
CLG Downstream Technology Hydroprocessing for the Future
n Hydrotreating cleans up contaminants
n Hydrocracking converts heavy oils to high quality jet and diesel
n Chevron hydroprocessing developed 50 years ago to handle SJV crudes – heavy and high in nitrogen
n LC-FINING hydrocracks vacuum resid
A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
8 A Chevron and Lummus Technology Joint Venture
What is LC-FINING? n An Ebullated Bed Resid Hydrocracking
Process Designed to Process Heavy, High Metals, and/or High Solids Feeds l Atmospheric and/or Vacuum Residues l Bitumen From Oil Sands l Deasphalted Oil
n Ebullated (Expanded) Bed Reactor is Key
Process Feature l Isothermal Reactor Operation l No Pressure Drop Build-Up l Catalyst Can Be Added and Withdrawn
On-Stream l Greatly Extends Unit Run Length Versus
Fixed Bed Hydroprocessing
n Process Features High Distillate Yields and High Heteroatom and Metals Removal
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-FINING Commercial Unit Summary
Unit BP
USA Syncrude Canada
Slovnaft Slovakia
RAM Italy
Shell 1 and 2 Canada
Neste Oil Finland
Shell 3 Canada
Northwest Canada
GS Caltex Korea
Feed Type Various VR
Atm/Vac Bitumen Urals VR Urals /Mid
East VR Vac.
Bitumen Urals VR Vac. Bitumen
Athabasca/Cold Lake
VR Mid East
VR
Capacity, BPSD 75,000 50,000 23,000 25,000 79,000 40,000 47,000 29,000 60,000
No. of Trains 3 1 1 1 2 1 1 1 2
Resid Conv. High Medium Medium Medium High Medium High High High
Process Goal
Max CCR Reduction
Max CCR Reduction
Stab LSFO
Stab LSFO SCO
Max Diesel Yield
SCO SCO Stab LSFO
LC-FINING Bottoms Utilization
Feed to Coker
Feed to Coker
Stab LSFO
Stable LSFO
Mod Sulfur Heavy SCO
LSFO
Mod Sulfur Heavy SCO
Gasif. Feed
Stable LSFO
10 Modern Plants (13 Trains) in Operation or Under Construction
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
GSCaltex LC-FINING Unit
10 A Chevron and Lummus Technology Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Residue Hydrocracking Challenges
n Conversion restricted by the nature of feed
n Sediment formation rises rapidly at higher conversions; conversion often limited by back-end fouling
n Full reactor potential (capital utilization) often restricted by sediment specification on UCO
n Unconverted oil from residue hydrocracking will not meet future IMO bunker fuel oil specifications
n Hydrogen is wasted in hydrogenation of asphaltenes in UCO
11
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-MAX Block Flow Diagram
12 A Chevron and Lummus Technology Joint Venture
Make-up H2
HP/HT Separator
Atm Fract
Vac Fract
Atmospheric Distillates
Vacuum Distillates
Vacuum Residue
Resid Feed
DAO
Pitch
H2 Rich Treat Gas
70-80% lift
First LC-FINING Reaction
Stage
Second LC-FINING Reaction
Stage
Gas Cooling Purification & Compression
Solvent Deasphalter
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-MAX Process Features
n Permits conversion limits to be extended to 85 wt%, even for very difficult residuum
n Fully integrated multi-stage process
n Whole VR is hydrocracked in a first reaction stage
n Unconverted oil is de-asphalted to remove heavy asphaltenes l hydrogen not wasted in asphaltenes hydrogenation and cracking;
cleaner operation
n DAO is hydrocracked in a dedicated reaction stage l much higher reaction rate constant à smaller reactor
13 A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-MAX Process Features cont’d n Increases crude processing flexibility – enables opportunity
crudes to be processed
n First stage conversion is limited to 48 to 60% to limit sediment formation
l Permits operation at relatively high temperature and high space velocity (reduced reactor size)
l Permits conversion to be achieved in a single reactor (reduced capital)
n Second stage conversion is maintained between 80 and 95% l Thanks to negligible asphaltene content of DAO second
stage can be run hot ~ 438°C (820°F) (reduced reactor size)
l Low asphaltenes content results in negligible sediment formation (cleaner operation, much less fouling)
14
A Chevron and Lummus Technology Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Comparison of Reactor Operating Conditions Stand-alone LC-FINING vs LC-MAX
15 A Chevron and Lummus Technology Joint Venture
Stand-alone LC-FINING
LC-MAX
1st Stage 2nd Stage
Flow Rate Base Base 0.4 Base
Reactor Temp °C Base +10 +28
Reactor Volume Base 0.45 Base 0.35 Base
Chemical H2 Cons Base 0.7 Base 0.4 Base
Catalyst Addition Rate Base 0.75 Base 0.13 Base
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-MAX Features
n Reactor volume for high conversion <= conventional LC-FINING unit
n Catalyst addition rate equal to or less than that consumed in units producing low sulfur fuel oil
n Downstream equipment fouling is much reduced
16 A Chevron and Lummus Technologies Joint Venture
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Disposition of Asphalt
n Coker
n Gasifier
n Pelletized
n Blended to make Fuel Oil
n Burned hot as fuel with minimal cutterstock
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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Case Study
n Base refinery has no residue upgradation, only Visbreaking
n Case 1: VR is sent to a Delayed Coking Unit
n Case 2: VR is sent to a LC-FINING unit
n Case 3: VR is sent to a LC-MAX unit
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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Case Study: Base Refinery
n Base refinery is processing 200,000 BPD of Arab Light/ Arab Medium (50/50 vol) crude blend and consists of: l FCC: 22,800 BPD
l Hydrocracking: 25,800 BPD
l Distillate HDT: 63,000 BPD
l Hydrogen Plant: 76 MMSCFD
l 26,400 BPD Visbreaking Unit to be replaced by Primary Upgrading Unit
n Other units: 14,500 BPD reformer; 11,400 BPD naphtha HT; 4,400 BPD alkylation; 310 TPD sulfur
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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Overall Yield of Products (Volume)
20
Product Yield on Crude, Vol %
Base Refinery
Delayed Coking
LC-FINING LC-MAX
LPG 3.8 5.0 4.7 5.3
Naphtha 9.2 14.5 12.6 13.7
Gasoline 13.3 12.5 12.4 12.7
Jet 15.0 15.0 15.0 15.0
Diesel 35.9 52.2 49.0 56.5
C3+ Distillate Yield, Vol % 77 99 94 103
0.5% S Fuel Oil
1.5% S Fuel Oil 10.9
3.5% S Fuel Oil 19.8
Asphalt 5.0 3.0
Fuel Grade Coke 5.6 (FOE) Volume Gain,% on Crude 1.98 -0.8 4.66 6.30
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Overall Yield of Products (Weight)
Product Yield on Crude, Wt %
Base Refinery
Delayed Coking LC-FINING LC-MAX
LPG 2.4 3.2 3.0 3.3
Naphtha 7.1 11.3 9.9 10.8
Gasoline 11.3 10.8 10.7 11.0
Jet 13.5 13.6 13.6 13.7
Diesel 34.3 49.7 46.9 53.8
C3+ Distillate Yield, Wt% 69 89 84 93 1.5% S Fuel Oil 12.3
3.5% S Fuel Oil 22.1
Asphalt 6.0 3.8
Fuel Grade Coke 7.4
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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Summary of Incremental Capacities
Capacity Delayed Coking LC-FINING LC-MAX
Delayed Coking, BPD 37,600 - -
LC-FINING, BPD - 38,300 -
LC-MAX, BPD - - 36,400
Hydrocracking, BPD 13,900 9,500 26,000
Distillate HT, BPD 20,400 16,600 23,000
Hydrogen Plant, MMSCFD 34 73 103
Sulfur Recovery, TPD 121 212 237
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CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
Upgrading Economics
Delayed Coking LC-FINING LC-MAX
TIC, MM $ 1,047 1,115 1,443 NPV, MM $ 1,265 1,590 2,269 IRR, % 29.1 31.1 32.3 MD Yield wt% 63 61 79
29.1
31.1
32.3
28.0
29.0
30.0
31.0
32.0
33.0
0
500
1,000
1,500
2,000
2,500
IRR
, %
TIC
MM
$,
NPV
MM
$
23
Economics are incremental to Base Refinery, Debt/Equity=0/100, 30% tax rate, 4 years of construction, straight-line depreciation over 15 years of project economic life, and 15% discount rate for NPV calculations
CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL
TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL
LC-MAX Process Summary
n Process concept has been proven and is ready for commercialization
n Maximizes residue conversion to ~85 wt % n Increases flexibility to handle more difficult feeds
n Reduces dependency of conversion on type of feed processed
n Rejects heavy asphaltenes from process n Reduces reactor volumes, catalyst and hydrogen consumption
n Has very attractive return on investment
n Process can be applied to revamp and grassroots scenarios
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