Process Engineer Role in oil & gas Refinery

Process Engineer's role in Oil & gas refinery & what do process engineers do

1. Process Design – What Chemical
Engineers Should Know

7
th
June’ 2013
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2. Out Line
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Chemical Engineering Overview
Role of Process Engineer
Issues Facing Refining Industry

3. Chemical Engineer


Chemical engineers are involved in the
design, modification and operation of
processes to produce the things we rely on
everyday - petrol, chocolate, cosmetics,
electricity, cars, aspirin, the list is endless...







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4. What is Chemical Engineering ?
vChemical engineering is the branch of engineering that
applies the physical sciences (e.g., chemistry and physics) and/or life
sciences (e.g., biology, microbiology and biochemistry) together with
mathematics and economics to processes that convert basic raw
materials or chemicals into more useful or valuable forms.
v
Modern Chemical engineering also deals with
pioneering valuable materials and related techniques – which are often
essential to related fields such as nanotechnology, fuel cells and
biomedical engineering.

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5. What is a Chemical Engineer ?
vChemical Engineers can be divided into two broad groups
•Chemical Process Engineers- This category deals in design,
construction and operation of plants and machinery in industrial
chemical and related processes
• Chemical Product Engineers- are involved in the development of
new or adapted substances for products ranging from foods and
beverages to cosmetics to cleaners to pharmaceutical ingredients,
among many other products









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6. Section-II : Out Line
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Role of Process Engineer

7. Fields of Operation
Process Engineers
are employed across a variety of sectors
including:
§Oil and gas
§Process plant and equipment
§Energy
§Chemicals and allied products
§Water
§Materials
§Mining and minerals
§Biotechnology
§Pharmaceuticals






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8. Process Engineer Interphases










Process
Engineering
Environment
Engineering
Mechanical
Engineering
Instrumentation
Engineering

9. Process Engineer – Fields of Operation










Process
Engineer
Chemicals Hydrocarbons Fertilisers Nuclear
Pharmaceutic
als

10. What Do Process Engineers Do?
vConceptualization of processes
vInvent new processes
vOptimization and control of processes to make them more cost
effective, efficient and environmental friendly.
vMake optimal designs (e.g pump and compressor power vis-à-vis
line size)
vPlan and operate facilities
vOptimally integrate various systems and facilities
vValue Engineering
v
Plant modeling



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11. What Do Process Engineers Do?
vConceptualization of Processes
§Definition of the plant – Feed, Products, Capacity
§Screening of options to ascertain whether the process is commercially
established / proven
§Study of alternative processes – comparison of salient features, capex,
opex, advantages & limitations
§Commercial application – Proven Track Record
§
Selection of Process Flow Scheme based on specific project requirements








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12. What Do Process Engineers Do?
vInvent new processes
§Which reaction pathways should be used to make the product?
§How to purify the desired product?
§How to control the process and ensure it is safe?
§How to make the process cost effective?
§What should be done with any by-products formed?
§How to reduce the amounts of unwanted by-products formed
§What to do with unreacted raw materials?
§How to recycle energy within process?





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13. What Do Process Engineers Do?
vOptimization and control of processes to make them more cost
effective, efficient and environmental friendly.
§Flow scheme simulation – generation of Heat & Mass Balance
§Flow scheme optimisation to minimise Opex
§Stream routing optimisation
§Energy optimisation
§Development of process controls to achieve
§Ensure stable operation
§Ensure safe operation
§Meet start up, shutdown & emergency requirements through process
controls & interlocks
§
Hardware optimisation to minimise Capex



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14. What Do Process Engineers Do?
vOptimal Design requires cost benefit analysis on case to case
basis. Few examples are
§ Pump and Compressor power vis-à-vis line size – HP piping, Pipelines etc
§Column number of trays vis-à-vis condenser & reboiler duties
§Low level heat recovery
§Designing for wide range of feedstocks vis-à-vis capacity compromise
§
Sparing philosophy for equipment to maintain high on-stream factor








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15. What Do Process Engineers Do?
vOptimally integrate various systems and facilities
§Stream & energy integration within a process unit or utility system
§Stream & energy integration between different process units
§Stream & energy integration between process units & utility facilities
§Stream & energy integration between process units & offsite facilities
§Common facilities for various process units to optimise hardware









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16. What Do Process Engineers Do?
vValue Engineering
§Implies adding value to an operating asset through either of the following
means :
§Reduction of capital cost
§Reduction of operating cost
§Yield improvement
§Product quality improvement
§Minimise quality give away
§Improve on stream factor
§
Minimise losses, enhance recovery, recycle





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17. What Do Process Engineers Do?
vPlant Modeling
§Key role in developing an optimum unit equipment layout
ØEquipment sequencing as per flow scheme
ØLayout to optimise cost by minimising high pressure, high alloy piping
ØEnsure that process requirements w.r.t free draining, no pockets etc are met
ØEnsure safe operation by restricting hazardous chemicals & their handling in
one area, adequate open space for equipment approach, escape in case of
emergency
Ø
Ensure ease of operation by locating equipment, CV, PSV, status lamps etc at
accessible locations for easy monitoring






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18. What Do Process Engineers Do?
vPlant modeling
§Key role in developing an optimum overall plot plan
ØUnits placement in overall plot plan to take care of process requirements
taking into account streams being handled
ØNature of process units (DCU, Sulphur block)
ØIntegration requirements between various units, utility generation & offsite
facilities
Ø
Future expansion envisaged, if any








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19. Process Engineering
Process Deliverables
–Study reports
–Feasibility reports
–Detailed feasibility reports
–Technology evaluation reports
–Basic Engineering Design Packages
–Commissioning and Safety / Investigation
–Diagnostics and Troubleshooting

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20. Methodology of Configuration Study and DFR
.
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KICK-OFF
MEETING
DESIGN BASIS
FINALIZATION
LP MODEL DEVELOPMENT -
BUILD VARIOUS OPTIONS
Carry out techno-economic
comparison of alternatives
based on CAPEX, OPEX, sales
realization, etc.
SCREENING OF OPTIONS
Short list 3-4 options after a broad
evaluation of a number of options and carry
out a detailed evaluation of these to arrive
at the recommended option.
Select and finalize the configuration option
Evolve Project cost estimates as part of DFR
Preparation of DFR




MID TERM REVIEW WITH CLIENT BEFORE SHORTLISTING OPTIONS.
REVIEW AFTER DEVELOPING SHORT LISTED OPTIONS. (FINALIZE THE CONFIGURATION).
FINAL REPORT

21. Basic Design & Engineering Package
§Basic engineering design basis
§Process flow diagrams
§Heat & material balance
§Process description
§Piping & Instrumentation diagrams
§Equipment & Instrument Specifications
§Catalyst & Chemicals
§Utility Summary
§Effluent summary
§Supervisory Operating Instructions

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22. Contents of Detailed Feasibility Report
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1. Executive Summary
2. Introduction
3. Market Study (optional)
4. Configuration Study Basis
5. Detailing of Short listed cases
6. Refinery Configuration &
Material Balance
7. Description of Project
Facilities
8. Process Units Description &
Process Flow Schematics
9. Utility Systems
10.Offsite Systems
11.Project Implementation Plan
12.Capital Cost Estimate
13.Financial Analysis
14.Environmental Considerations
15.Over all Plot plan
16.Social & Economic Benefits
17.Energy Conservation
Measures
18.
Conclusion & Recommendation

23. Components of Project Cost
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1. Land
2. Site Development
3. Royalty/Know-how/BDEP
fee
4. PMC Supervision
5. Plant & Machinery
6. Catalyst & Chemicals
7. Infrastructure
§Roads & Buildings
§Effluent Treatment Plant
§Railway Siding
§Product Dispatch

8. Construction Site
Requirements
9. Owner Construction Period
Expenses
10.Start-up & Commissioning
Expenses
11.Township
12.Contingency
13.Working Capital Margin
14.
Interest During Construction

24. Thank you
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25. Section-III : Out Line
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Issues Facing Refining Industry

26. Engineers India Limited- Delivering excellence through people
Challenges Facing Refining Industry
Shrinking Operating
Margins
Reducing Differentials
Rising Crude Prices
Deteriorating Crude Quality
Improving Product Quality
Stringent Pollution Norms

27. Engineers India Limited- Delivering excellence through people
Changing Crude Mix
Feedstock Shift
from Low ‘S’
Light crudes to High Acid Crudes
High Sulphur Crudes
Heavy Crudes
Unconventional Feedstocks

28. Regional Crude Oil Production
Increasing
§Middle East
§CIS
§Africa
§Canada
Flat
§United States
§ Latin America
§ Asia
Declining
§Europe

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29. Heavy Sour Crude Production
Observations :

vTotal heavy sour crude
production is expected to
reach 700 MMTPA (14
million B/D ) by Yr. 2020, an
increase of over 125
MMTPA over year 2010
production.
vThe largest increases will
come from the Middle East
& Canada.

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30. Conventional & Un-conventional Oil Reserves
•Current share of unconventional
sources in the total output is about
25%. This is expected to rise to
40% of global oil supply by the
year 2015.

•Unconventional oil reserves are
estimated to be about 6 trillion
barrels .

•Conventional oil reserves are
estimated to be 1.2 trillion barrels.
30%
15%25%
30%
Total World Oil Reserves
Conventional Oil
Heavy Oil
Extra Heavy Oil
Oil Sands Bitumen

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31. Facts About Opportunity Crudes

§ Opportunity crudes have growing presence in global oil market
§ Demand is driven by fluctuating oil prices
§ Processing does pose operating challenges
§Careful analysis of crude type is a pre-requisite to establish
feasibility & economic justification
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32. Opportunity Crudes Processing Puzzle

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33. Crude Prices & Spread

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34. Crude & Fuel Product Price Differentials
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35. Indian Refineries Configuration

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36. Lt + Middle Distillate Yield

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37. Refinery Operating Cost Summary

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38. Upgrade Low Value Streams

§ Ethylene Recovery from FCC & DCU Off Gases
§ Conversion of Propane to Propylene
§ Residue Upgradation
§LCO Upgradation
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§ Sulphur to Sulphuric acid

39. Ethylene Potential in Off Gases
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For a 9 MMTPA refinery, the total ethylene potential in Coker+Petro FCC off
gases is 104.5 KTPA.

40. Ethylene Recovery From Off Gases
ACID GAS
REMOVAL
COMPRESSION
DRYING &
CONTAMINANT
REMOVAL
ACETYLENE
POLISHING
DeC
1 C
2 SPLITTER
C
2 H
4
C
2 H
6
To Fuel
Fuel Gas
DeC
2
C
3+ To

PRU
Feed
From
Gas
Plant
CASCADED
REFRIGERATION

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41. Economics of Ethylene Recovery
vAbout 104.5 KTA of ethylene can be recovered with ERU only
which is about MM$104.5 per year based on ethylene price of
US$1,000 per ton.
vAbout 44 KTA of additional ethylene can be produced by
adding a steam cracking furnace to crack the ethane
recovered in the ERU. The additional revenue will be about
MM$44 per year less the fuel value of ethane.

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42. Propylene Supply Demand - Global
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ü Propylene gap is increasing
üSteam crackers shifting to lighter
feedstocks which produce less
propylene
üOn-Purpose Propylene is filling the
gap :

§ High severity FCC (16-20%)
§ Propane Dehydrogenation (~80%)
§ MTO / MTP from coal, gas (25-40%)
§ Olefin Cracking (35-45%)
§ Metathesis

43. Propylene Demand is Driven by Plastics
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44. Propylene Derivatives






Propylene
Benzene
Cumene
Phenolic
Resins
Phenol
Poly
Carbonates
Epoxy
Resins
Acetone
Other
Solvents
Acrylates
Caprolactum
Bisphenol-
A
Petro FCC
Aromatic
Complex

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45. Engineers India Limited- Delivering excellence through people
Typical LCO Properties
High in Aromatics > 80%
Nitrogen 100 ~750 wppm
Sulphur 0.2~1.5 wt%
FCC
Diesel Boiling Range
T-95 > 360
0
C
Low Cetane 15~25
Gas Oil
Clarified Oil
Gasoline
Light
Ends
LCO

46. Typical Aromatic Distribution in LCO
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Source : NPRA

47. Limited Product Upgrade By LCO Hydrotreating
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Source : NPRA

48. Engineers India Limited- Delivering excellence through people
LCO Disposal Options
Aromatics Production
Hydrotreating

LCO
Internal Fuel Firing
LCO Cracking
Diesel
Diesel
LN
Fuel Oil
Diesel
LPG
Gasoline
Benzene
Xylenes

49. LCO Cracking Economics
vTypical conversion achieved = 75%
§Conversion to HN = 45%, Benzene = 10%, Xylenes = 20%

vCapital cost of a 0.7 MMTPA ISBL unit
§Hydrocracking (to HN & HSD) = Rs 450 cr
§Hydrocracking (to HN & Aromatics) = Rs 625 cr

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50. Residue Conversion Options
Solvent Deasphalting
Delayed Coker
Deep Hydrocracking
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51. Deep Hydrocracking Options
Slurry Technology
VR conversion ~90% wt
High contaminants
tolerance
Back mixed reactor
Iron based catalyst
Slurry bottom product is
solid product
Bottom product disposal
issues
No commercial reference
Ebullated Bed
Technology
VR conversion levels 70-
80% wt
Bottoms is liquid product
Back mixed reactor 17 units in operation
Semi-continuous catalyst
addition / withdrawl
Expensive catalyst
Catalyst disposal by
metal reclamation
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52. Resid Upgradation Technology Comparison
Parameter SDA DCU Ebullated
(LC-Fining/ H-oil)
Slurry
Hydrocracking
Conversion wt% 50 70 70~ 80 80 ~ 90
Capital cost
US $/bbl of feed
1120 3300 5150 6911
H
2, wt% on FF 0 0 3.0 3.0
Catalyst
$/ton of feed
0 0 10 2
Catalyst Make up None None Intermittent Continuous

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53. Engineers India Limited- Delivering excellence through people
Evolution of Global Refining Industry
Hydro skimming
Refinery
Secondary
Processing
Complex
Refinery
Complex
Refinery
Residue
Upgradation
Petrochemicals
Integration
Integrated Refinery-
Cum-Petrochemical
Complex
§ Hydrogen
§ Chemicals
§ Petrochemicals
Gasification

54. Engineers India Limited- Delivering excellence through people
Refinery Petrochemical Integration
§ Workable & mutually beneficial solution
§ Adds value without compromising operations
§ Enhances cost competitiveness & hence economics
§ Major savings achieved in transportation, dispatch /
receipt facilities, utilities & other expenses
§Operational flexibility derived by feedstock optimisation
to meet feedstock requirement of petrochemical industry

55. Engineers India Limited- Delivering excellence through people
Refinery Streams for Petrochemical Integration
FCC & Coker
Off Gases
Fuel Gas
FCC LCO
FCC & Coker
Propylene
FCC & Coker
Butylenes
Kerosene
Ethylene / Derivatives
MS Pool, Alkylation Propylene, Butylene
LPG
PP, Cumene / Phenol,
Derivatives
MEK, MTBE,
Secondary Butanols
LPG, Alkylation
Naphthalene Gasoline, Diesel, IFO
Refinery Stream Use in Refinery Petrochemicals
SKO / Jet / HSD Pool Ethylene / Derivatives

56. Engineers India Limited- Delivering excellence through people
Potential Gasification Feeds & Products
Chemicals
Production
Gasification
Plant
Natural Gas
Refinery Gas
Vacuum Residue
Pitch
Coal
Pet Coke
Bio Mass Fischer Tropsch
Reaction
Combined Cycle
CO
2, N
2, S
Steam
Electric
Power
§ H2
§ CO
§ Fertiliser
§ Chemicals
§ Methanol
§ Acetic Acid
§ Naphtha
§ Jet
§ Diesel
§ Wax
Slag for Construction Material & Metal Recovery

57. CDU / VDU
Delayed
Coker
Product
Treatment
Secondary
Processing
Coke
Gasification
Syn Gas
Cleaning
Methanol
Alcohols
Acetic
Acid
Oxo Alcohols
Ethylene /
Propylene
Ketones &
Derivatives
Poly Olefins
Formaldehyde
Di-Methyl Ether (DME)
Acetate
Esters
Fuel
Distillates
Achievable conversion through Methanol route
•Methanol to Ethylene = 36%
•Methanol to Propylene = 39%
•Methanol to Butylene = 5%
•Methanol to C1- C4 Alkanes = 20%
Coke Gasification to Produce Methanol & Derivatives

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Indian chemical industry is estimated to
grow at 11-15% p.a to reach US$ 224
billion by Yr 2017.

58. Pet Coke Gasification

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100 t/hr Pet Coke Gasification requires
85 t/hr Oxygen to produce
200 t/hr of Syn Gas

59. Pet Coke Gasification

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v Typical Syn Gas Composition :
§CO = 49.5 %
§H2 = 32.5 %
§CO2 = 15.5 %
§Others = Balance
v Capital Cost of a 1 MMTPA Pet Coke gasification
plant is Rs 3500 crores
§Gasifier = Rs 800 Cr
§ASU = Rs 950 Cr
§BOP = Rs 250 Cr
§Constr., Engg. & indirect costs = Rs 1500 Cr

60. Section-IV : Out Line
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Concluding Remarks

61. Conclusion
§Refineries are required to incorporate unconventional feedstock
processing technologies around a core of existing conventional oil
refining assets to improve economics & handle future crude quality.
§Distillate yield of existing refineries must be enhanced with
incorporation of residue upgradation facilities
§Low value refinery streams need review for upgradation to value
added products
§Integration with Petrochemicals is mutually beneficial proposition
§Gasification of low value streams provides a window for value
addition as well as diversification into Chemicals & Petrochemicals.




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62. Chemical Engineer - Roles










Process Design
Research & Development
Production
Sales

63. Sulphuric Acid Process Flow Scheme
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