Investment in refining capacities in Serbia

Transcription

1 Investment in refining capacities in Serbia Ivan Souček, Dmitry Vasiliev NIS a.d. Energy Community 6th Oil Forum Belgrade, Serbia 30 September

2 CONTENT Refining Industry current challenges NIS Pancevo Oil Refinery - History Modernisation program Assessment and Introduction MHC/DHT complex construction overview Base Oils Project Novi Sad Bottom of the Barrel project - Pančevo Conclusions 2

3 Refining Industry current challenges Brent refining margin: 01/ /2013 Refinery Closures and Regional Development 3

4 NIS Pancevo Oil Refinery - History In the first first phase phase of development of development of the Pancevo of the Oil Pancevo Refinery (1968) Oil following Refinery units (1968) were built: following units were built: 1. Crude distillation unit I; 2. Visbreaking unit; 3. Platforming unit; 4. Hydrodesulphurization; 5. Gas treatment unit I; 6. Naphtha redistillation unit; 7. Aromatics extraction unit; 8. Merox unit for gasoline; 9. Merox for Jet fuel I, II; 10. Sour water treatment plant; 11. Waste alkali treatment plant. In the second phase of NIS RNP development (1980- In 1983), the the second new units phase were of built: NIS RNP development ( ), the new units were built: 1. Crude distillation unit II; 2. Vacuum distillation unit; 3. Fluid catalytic cracking unit; 4. Hydrodesulphurization unit; 5. Sulphur recovery unit; 6. Gas treatment unit II; 7. LPG Merox unit; 8. Alkylation unit; 9. Merox for light cracked naphtha; 10. Merox for light cracked naphtha; 11. Bitumen unit; 12. Sulfolane aromatic extraction unit. 4

5 MHC/DHT complex construction overview Development program - Phase : Refinery modernization Feasibility studies: ABB Lummus, JGC, Shell, AMEC-UOP-PEL : BEDP: Chevron Lummus, WorleyParsons, FW,... FEED: ABB Lummus 2005: Pre-qualification procedure for engineering company for realization of EPC Phase Works was done in the 3 years period: : ЕРСМ Contract signature : Commencement of work at the construction site : Completion of the main equipment installation (9-month delay from the original schedule recorded) : Supplemental Agreement signed providing delay reduction down to 3 months (Мechanical Сompletion 22 August 2012) : Мechanical Сompletion of the SARU Unit : Start up of reconstructed GFU, MC of the Flare, MC of the Power Distribution Station 220kW, MC of LPG Park, MC of the Control Room, MC of the Sulfur Granulation Unit, MC of the N2, MC of the Water Treatment Unit,MC of the instrument gas, condensate, fuel gas, water treatment, fire protection systems, MC of the PSA Unit : Мechanical Сompletion of the МНС/DHT Complex : Ready for Start-up 5

6 Modernization program (Phase 1) Modernization program (Phase 1) Building of new units: MHC/DHT, Hydrogen generation unit (HGU+PSA) Sulphur recovery unit (SRU), Spent sulphuric acid regeneration unit (SARU) Amine regeneration unit (ARU), Sour water striper unit (SWSU) Reconstruction of existing units: Fluid catalytic cracking (FCC), Gas concentration unit (GCU) Off-site and utilities: Common control room, Tank farm storage, Loading and unloading oil derivatives unit, Cooling water and condensate units New flare, fuel gas, energy distribution and other offsite and utilities Main goals of NIS Pancevo modernization Main program: goals of NIS Pancevo modernization program: Oil derivatives production according European standards (EURO 5) Oil derivatives production for domestic market and export, Increasing production of white derivatives Energy consumption optimization To achieve competitive level of Solomon indexes Total investment cost: over 500 MM EUR Period of realization, EPC phase: Fulfillment (scope- and time wise) of Gazpromneft obligation according Agreement between Republic of Serbia and Russian Federation related to modernization of refining capacities. 6

7 Hydrocracking/Hydrotreating (MHC/DHT) construction Project Construction of the hydrocracking of VGO/hydrotreating of diesel fractions integrated system creates solutions for the following tasks: Increase in the production of diesel Euro-5 fuel quality due to conversion of VGO. Processing of diesel fractions with high content of S, N compounds, of the unsaturated compounds with low cetane number, to create a high-octane diesel fuel with ultra-low sulfur content. Reduce the costs of constructing a new plant for diesel fuel hydrotreating with a block for de-aromatization of diesel fraction of the catalytic cracking and visbreaking units. The possibility of share of VGO between catalytic cracking and hydrocracking units in accordance with demand for gasoline and diesel fuel. There is a possibility of increasing the conversion of hydrocracking feed from 40% to 50% due to re-circulation of the hydrocracked residue into the process. Facilities, located in the hydrocracking complex, occupy minimum area, but the equipment layout makes it possible to 7 perform remedial works on the equipment at no additional cost. Hydrocracking/Hydrotreating МHC/DHT capacity: Vacuum gasoil 1.48 mil.t/y (MHC) Diesel/LCO fractions 1.52 mil. t/y The complex capacity selection criteria: Capacity of Oil Refinery Pancevo - oil 4.8 mil. t/y Capacity of FCC 1 mil. t/y (feed: MHC unconverted oil) Euro 5 diesel fuel processing capacity increase, taking into consideration diesel fraction hydrotreating from the visbreaking and catalytic cracking units Technology: Chevron ЕРСМ contractor: CB&I Lummus Global

8 Hydrogen Generation Unit (HGU).Construction of Spent Sulfuric Acid Regeneration Unit(SARU) Technology: NG and light hydrocarbons Steam Reforming + PSA purging The unit capacity is 6.9 t/h of hydrogen (77,000 Nm3/h) ЕРС contractor: Heurtey Use of modern technologies from Haldor Topsoe, Purpose: to recycle spent sulphuric acid produced during the processing of high-octane component in the alkylation process of C4 fractions. The product sulphuric acid unit capacity kg/h ЕРС contractor: TKV Kovoprojekta 8

9 Comparison of motor fuel quality Comparison of gasoline quality, before and after modernization: Characteristics Before modernization After modernization Sulphur, max, mg/kg Benzene, max, % (v/v) 5 1 Total aromatics, % (v/v) Pb, mg/l 13 0 Comparison of diesel quality, before and after modernization: Characteristics Before modernization After modernization Sulphur, mg/kg (in average) max. 10 Polycyclic aromatics max, % (m/m) not limited 11 9

10 Base Oils project Novi Sad (Phase 2) NIS in cooperation with CLG executed extended BDP for Base Oils project utilising available quantity of naphthenic (regionally available) crude oils and UCO from MHC unit of refinery Pancevo. Project is now in FEED/EPC phase under execution of Foster Wheeler expecting compeltion of the project (ready for Start-up in the middle of 2016). State-of-art technologies are applied in the new production scheme allowing to produce high-quality of Base oils in total quantity of 181 kt/y 10 10

11 Bottom of the Barrel (Phase 3) NIS in cooperation with APS Engineering (in continuation of previously made analysis and taken decisions) launched elaboration of the Feasibility study originally requesting to elaborate 4 main technology otions: DCU/Residue hydrocracking/solvent Deasphalting/Deep hydroconversion with sub-options of integration with energy production and all options allows integration of Pancevo and Novi Sad refinery and production of Base Oils there. APS Engineering finally executed evaulation of 14 options covering the above basic streams and DCU with processing secondary streams on existing units (esp. MHC/DHT) was finally selected as the best option for Engineering phase. Current project status: Current project status: Final approval by Shareholders : Launch tender for BDP/FEED: Bids delivery by 3 world-class engineering companies: Establishing the Project office Further steps: Further steps: Completion of Bids technical evaluation: 09/2014 Completion of analysis of Project Economical effectiveness: 09/2014 Commercial negotiations and selection of the best Bidder: 10/2014 Contract signature for elaboration of BDP and FEED:11/2014 Kick-off-Meeting: 12/2014 Elaboration of BDP/FEED: 10 months 11 11

12 Development program - Phase 3 In the future Refinery configuration, the feeds that shall be sent to Delayed Coker Unit will be the following: Vacuum Residue from Vacuum Distillation Unit Slurry oil from Fluid Catalytic Cracking Unit. The main products of Delayed Coker will have the following destination: Fuel Gas, to be used inside the unit as fuel for furnaces; the excess of fuel gas can be routed to refinery fuel gas system. LPG, (as mixture of propylene, propane, butylenes and butanes with some impurities like dienes), to be sent to LPG storage after proper treatment (amine washing, caustic treatment, etc..); Coker Naphtha, to be sent to existing Diesel Hydrotreater (DHT), before to be used for gasoline production; Light Coker Gasoil (LCGO) to be sent to existing DHT, before to be used for diesel production; Heavy Coker Gasoil (HCGO) to be sent to Mild Hydrocracking (MHC) as feedstock; The produced coke will be sold on the market as coke fuel grade and a dedicated Coke Handling unit has to be foreseen for coke management. 12 Crude & Vacuum Distillations Crude & Vacuum Distillations Simplified Block Scheme of Delayed Coker addition - Operation Block 1 (100 days/year) S-300 S-4300 MHC S-4400 DHT (*) Naphtha & LCGO DCU Bitumen S-0250 Slurry Heavy Naphtha HCGO Coke (*) Minor Modification foreseen in Stabilizer Section only (*) Minor Modification foreseen in Stabilizer Section only S-2300 FCC S-2450 / S SRU UCO Tank UC1 Tank S-2400 Simplified Block Scheme of Delayed Coker addition - Operation Block 2 (230 days/year) S-300 S-4300 MHC S-4400 DHT (*) Naphtha & LCGO DCU Bitumen S-0250 Slurry Heavy Naphtha HCGO Coke S-2300 FCC S-2450 / S SRU UCO Tank UC1 Tank S-2400 S-2950 /S Amine S-2950 /S Amine HCGO Tank RNS Lube New or Revamped Units RNS Lube HCGO Tank New or Revamped Units

13 Development program - Phase 3 The PROJECT has been and will be developed through the following phases: STEP I Feasibility Study (executed by 07/2013) Assess the most effective technology for processing, optimise of refinery capacity ensuring satisfaction of market demand, products slates and specific constraints at domestic and export markets, ensuring elimination or minimization of fuel oil and other black products and ensuring quality of products as per Euro standards; Ensure the compliance with Local and European environmental and safety regulations Achieve the best economic performance of NIS Refineries and assess the optimal investment plan STEP II FEED CONTRACTOR Selection (to be completed by 10/2014) The subsequent phase carried out and aimed to select the FEED CONTRACTOR STEP III - BASIC/FEED Design (expected duration is 10 months) III-a: FEED Propaedeutic Analysis, to select final Configuration and review proposed capacity of conversion unit III-b: BASIC DESIGN/FEED Design for the selected Configuration and Licensor STEP IV EPC (or EPCM) CONTRACTOR Selection (expected duration is 6 months) The subsequent phase aimed to select the EPC (EPCM) CONTRACTOR who will realize the plant modifications and the new installations. STEP V EPC (or EPCM) (expected duration is 24 months) During this phase detail engineering, procurement, new units construction and existing units & facilities reconstruction will be carry out by the selected EPC (EPCM) CONTRACTOR. 13

14 Dynamics and structure of the refining products processing at NIS for the period LPG Gasoline Naphtha JET Diesel Lubrificants Fuel oil Bitumen Coke/pitch Fuel and loss 4% 7% 100 4% 13% 13% 25% % 4% 6% 20% % 0% 9% 12% 11% 13% 3% 3% 14% DCU allows to improve product basket 3% by elimination of production of Heavy Fuel Oils and improve conversion to 31% 34% 94 % when more effectivelly utilise installed capacities 41% 1% Heavy Fuel oil is replaced by 4% increased production of Diesel (increase of by 30%) and fuel coke 100 4% 3% 7% 4% 4% % 14

15 Final Crude oil processing scheme: Phase 2 and 3 impact Crede Oil Crude processing in RNP Fuel Coke Crude processing in hydroskimming configuration Delayed Coker Automotive Fuel Unconverted oil from hydrocracker Hydrocracker FCC Base oils in RNS 15

16 Conclusions NIS operating 2 refineries in Serbia, introducing 3-phased investment program, producing already fully EURO quality standard motor fuels (possibly incl. bio-components) and improving impact on environment is recognizable player in the refining industry in the region. NIS recognizing current challengies in front of European and regional refining industry is continuing investment programs for improving its profitability and achieving reduction of quantity of black products, placing on the market most demanded refining derivatives and taking into account that viable refinery should demonstrate the following chracteristics: Capacity suitable to serve respective market to be utilised more than 90% Complexity - NCI>10 operating State-of-the-art technology HSSE standards meeting local requirements and international practices 16