MALAYSIAN FUEL QUALITY AND BIO-FUEL INITIATIVE

Transcription

1 MALAYSIAN FUEL QUALITY AND BIO-FUEL INITIATIVE By Fazil Mat Isa Group Research, Research & Technology Division PETRONAS 5 th Asian Petroleum Technology Symposium Jakarta, Indonesia January 23-25, 2007

2 Presentation Outline National Energy Balance 2004 The current and future Malaysian Fuel Quality Malaysian Bio-fuel Initiatives

3 General Information MALAYSIA Total area: 329,750 sq km Total States : 13 Climate: Tropical Population: 23,953,136 (July 2005) Proven Oil Reserve : 3.0 billion barrel (Jan 2003) Oil Production: 600,000 bbl/day (2003)

4 National Energy Balance 2004 Primary Energy Demand (ktoe) 30,000 Oil Natural gas Coal Hydro 25,000 20,000 15,000 10,000 5,

5 National Energy Balance 2004 Final Energy Demand, ktoe 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Year Petroleum products Natural gas Coal Electricity Total

6 National Energy Balance 2004 Final Energy Mix, % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Year Petroleum products Natural gas Coal Electricity Final Energy Mix (%) Petroleum products 87% 77% 75% 73% 66% 64% 62% 61% 61% Natural gas 1% 6% 8% 9% 13% 15% 17% 17% 17% Coal 1% 4% 4% 3% 3% 3% 3% 4% 3% Electricity 12% 13% 13% 15% 18% 18% 18% 18% 18%

7 National Energy Balance 2004 Malaysia Final Energy Mix (%) Coal 3% Electricity 18% Natural gas 17% Petroleum products 62%

8 National Energy Balance 2004 Final Energy Used by Sector, % 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Year Industrial Transport Residential & Commercial Other Final Energy Use by Sector (%) Industrial 45% 41% 40% 36% 38% 38% 39% 39% 40% Transport 38% 39% 41% 35% 41% 42% 40% 41% 41% Residential & Commercial 13% 13% 12% 13% 13% 13% 13% 13% 13% Other 5% 7% 7% 16% 8% 8% 8% 7% 6%

9 National Energy Balance 2004 Malaysia Final Energy Used by Sector Residential & Commercial 13% Other 6% Industrial 40% Transport 41%

10 Air Pollutants and Its Sources Percentage of Pollutants Emitted to the Atmosphere, 2003 Emissions of Pollutants to Atmosphere by Source, 2003 NOx 16% SOx 13% PM10 1% Stationary Sources 12% Others 8% CO 70% Mobile Sources 80% * Source from Compendium of Environment Statistics, Malaysia 2004

11 Gasoline Specifications Properties Current Proposed Euro 2M Proposed Euro 4M* Research Octane Number 97 min 97 min 97 min Colour Yellow Yellow Yellow Lead, g/l max max max Existent Gum, mg/100ml 4 max 4 max 4 max Copper Corrosion, 1 max 1 max 1 max Distillation IBP, C 40 max 40 max 40 max T10, C 74 max 74 max 74 max T50, C T90, C 180 max 180 max 180 max FBP, C 215 max 215 max 215 max Residue, vol% 2 max 2 max 2 max 15 ºC, kg/l To be reported To be reported Reid Vapour Pressure, kpa 70 max 65 max 60 max Total Sulphur, ppm 1000 max 500 max 50 max Benzene, vol% max 1.0 max Note: * Record based on OITC initial discussion

12 Proposed Malaysia Gasoline Specs versus EN 228 Properties Proposed Euro 2M Proposed EURO 4M* EN 228:1993 EURO II EN 228:2004 EURO IV 15 ºC, kg/l To report Reid Vapour Pressure, kpa 65 max 60 max Total Sulphur, ppm 500 max 50 max 500 max 50/10 max Benzene, vol% 5.0 max 1.0 max 5.0 max 1.0 max Aromatics, vol% max Olefins, vol% max Oxygen Content, wt% - - Distillation, FBP ºC 215 max 215 max max 2.7 max 210 max Note: * Record based on OITC initial discussion

13 Gasoline in Malaysia Typical Unit A B C D E F Density kg/l RVP kpa RON Sulphur Content ppm Benzene Content % Data: March 2004 Note: 1. All the fuels in Malaysia meet the proposed Malaysian Euro 2M gasoline specification, except RVP. 2. To meet the proposed Malaysian Euro 4M gasoline specification, the refineries needs to consider installation of new hardware, e.g benzene extraction unit and etc.

14 Diesel Specifications Properties Current Proposed Euro 2M Proposed Euro 4M* Colour (ASTM) 2.5 max 2.5 max 2.5 max Ash, wt% 0.01 max 0.01 max 0.01 max Pour Point, C 15 max 15 max 15 max Flash Point, C 60 min 60 min 60 min Kinematic 40 C, cst Copper Corrosion 1 max 1 max 1 max Water by Distillation, vol% 0.05 max 0.05 max 0.05 max Sediment by Extraction, wt% 0.01 max 0.01 max 0.01 max Micro Carbon Residue, wt% 0.10 max 0.20 max 0.10 max 15 ºC, kg/l To be reported To be reported Total Acid Number, mg KOH/g 0.25 max 0.25 max 0.25 max Cetane Index 47 min 49 min - Cetane Number 45 min 49 min 51 min Distillation, T95, C 370 max (T90 C) 370 max 360 max Total Sulphur, ppm 3000 max 500 max 50 max Lubricity, µm max -

15 Proposed Malaysian Diesel Specs versus EN 590 Properties Proposed Euro 2M Proposed EURO 4M* EN 590:1993 EURO II EN 590:2004 EURO IV 15 ºC, kg/l Cetane Number 49 min 51 min 49 min 51 min Distillation, T90, C Distillation, T95, C 370 max 360 max 360 max 360 max Total Sulphur, ppm 500 max 50 max 2000 max 50/10 max Poly Aromatics, vol% max 11 max Total Acid Number, mg KOH/g max - - Electrical conductivitiy, psm 50 - Lubricity, µm 460 max max Note: * Record based on OITC initial discussion

16 Diesel in Malaysia - Typical Unit A B C D E F Density, kg/l Cetane Number Distillation, T90 C Distillation, T95 C Sulphur Content ppm Data: March 2004 Note: 1. To meet the proposed Malaysian Euro 2M diesel specification, the refineries needs to install new hardware, e.g Distillate HydroTreater unit etc

17 Refineries in Malaysia Company Location Capacity, bpd PETRONAS Penapisan (Melaka) Sdn Bhd, Sg. Udang, MELAKA PETRONAS Penapisan (Terengganu) Sdn Bhd, Kertih, TERENGGANU SHELL Refining Company Bhd, Port Dickson, NEGERI SEMBILAN 200,000 40, ,000 ESSO Malaysia Bhd, Port Dickson Refinery, NEGERI SEMBILAN 85,000 * Source from 2004 Worldwide Refining Survey, Oil and Gas Journal

18 National Bio-fuel Policy The National Bio-fuel Policy was tabled to Parliament in Oct Policy s Strategic thrusts: Producing bio-diesel fuel blend of 5% processed palm oil with 95% petroleum diesel for transport & industry Encourage research, development & commercialization of bio-fuel technologies Encourage of setting up palm oil bio-diesel plants for export Bio-fuel for cleaner environment Initial introduction to government fleets by 2006.

19 National Bio-fuel Policy Implementation Strategy: Short Term: Establishment of Malaysian Standard specifications for B5 diesel B5 introduction to public at selected stations Voluntary trial on B5 diesel for selected users in industrial sector A promotional awareness program to educate public on the use of B5 diesel. Medium Term: Establishment of Malaysian Standard specifications for palm based methyl ester bio-fuel for domestic use and export Extensive B5 testing effort to obtain engine manufacturers warranties on the use of B5 diesel. Legislation to mandate the use of B5 diesel Encourage establishment of commercial methyl ester plants. Long Term: Increase proportion of processed palm oil in diesel blend Greater uptake of bio-fuels technology by Malaysian companies

20 National Bio-fuel Initiative ENVODIESEL - is a 5% Refined Bleached Deodorised (RBD) Olein blended petroleum diesel. Issues & Concerns : ENVODIESEL is not a bio-diesel by definition EN & ASTM D 6751 OEM concern on possible deterioration of the triglycerides through oxidation leading to : - shortened durability of injectors and injection pumps - deposition on injectors and clogging of fuel filters Viscous with higher carbon residue compared to typical diesel

21 Potential Problems with ENVODIESEL Fuel Components Effect Potential Problems Free glycerin Mono-, di- and triglycerides Corrosion of non-ferrous metals Soaking of cellulose filters Sediment on moving parts and lacquering Similar to glycerin Corrosion Filter plugging Injector coking Injector coking Free water Hydrolysis triglycerides to form fatty acids Corrosion Process chemicals Fatty acid methyl esters Entry of potassium & sodium and alkaline earth metals Free fatty acids hastens corrosion of nonferrous metals Salt formation with organic acids Sedimentation Softening, swelling or hardening and cracking of some elastomers including nitrile rubbers Displacement of deposits from diesel operation Filter plugging Corrosion Filter plugging Fuel leakage Filter plugging

22 Summary Malaysia final energy use posted a strong growth in 2004 with petroleum products constitute a major fraction of the final energy consumption. Transport sector continue to remain the main consumer of energy with 41.2% share of the total end-use demand. High capital investment is required for Malaysian refineries to meet the proposed EURO 4M specifications. Introduction of ENVODIESEL require detail field assessment to address concern on potential issues related to the compatibility and stability.

23 Thank you