Bitumen Upgrader Residue Conversion to Incremental Synthetic Fuel Products

Transcription

1 March 5-7, 2014 NEW ORLEANS, LOUISIANA, USA HYATT REGENCY NEW ORLEANS Bitumen Upgrader Residue Conversion to Incremental Synthetic Fuel Products Steve Kresnyak, P.Eng Jan Wagner, P.Eng WHOC Organized by: 1

2 Legal Disclaimer This presentation contains forward looking statements based on management s assessments of future plans that involve engineering, operational and financial estimates of future production, capital expenditures, cash-flow and earnings. A number of risks and uncertainties that may or may not be within control of the company and may cause these results to vary materially from those predicated herein and the reader is therefore cautioned that such information is speculative in nature. 2

3 Introduction Current State & Outlook Alberta Hydrocarbon Industry Introduction to FTCrude Technology Review FTCrude Process Configurations FTCrude Partial Upgrader to produce 20 to 24 API PUB FTCrude Full Upgrader to produce 30 to 38 API Sweet SCO FTCrude Refinery to produce ULSG, ULSD, ULSJ Basic FTCrude Economics Summary Why FTCrude? 3

4 Current State of Alberta Hydrocarbon Industry Surplus of Natural Gas in North America Alberta Gas not competitive in US markets - prices very low and Alberta Royalty recovery 30% of peak Disconnect between North American NG Price and Oil Price Alberta Oil Markets Restrained due to lack of Pipelines Alberta Oil (Non diluted Bitumen) discounted by 40% from WTI Price Potential shortage of low cost Diluent to transport Alberta Bitumen Alberta Oil (Bitumen) has no access to Foreign Markets and cannot enjoy favourable world Brent pricing Alberta Oilsands Image low dirty oil, high GHG emissions Alberta at risk of NOT achieving GHG emission reduction goals for

5 Long Term View of Energy Pricing? 5

6 Forecasted Growth of Alberta Oilsands 6

7 Proposed Solution to Alberta Oilsands Market Future Canadian Oilsands Production = 2,800,000 BPD Enbridge Northern Gateway 525,000 BPD TCPL Energy East 850,000 BPD Kinder Morgan Exp 590,000 BPD TCPL Keystone XL 830,000 BPD 7

8 Outlook for Hydrocarbon Industry NG (AECO) Price expected to be less than $4.00 per GJ long term World Oil price expected to be greater than $100 per BBL long term Market pressure on Alberta Bitumen reducing value to less than $50 per BBL Future high growth crude markets will be Asia; China, India Production of Petcoke facing rising public opposition Rising public pressure to reduce GHG emissions Need for more efficient way to create value for 100% Alberta Oilsands Resources without diluent or Petcoke and produce highest quality transportation fuels and lowest GHG emissions to earn respect in world market! 8

9 Solutions for Alberta Current Natural Gas Solutions Export gas to high value market LNG Add value to Natural Gas GTL, Methanol, DME, Ammonia Build east/west oil pipelines to tidewater to gain access to new global markets Add value to Bitumen through partial or full upgrading - Dilbit does not add value Add value to Bitumen using cheap natural gas Convert Bitumen Residues to incremental Synthetic liquids FTCrude concept can offer the solution 9

10 FTCrude converts asphaltenes and other residues to synthetic fuels Residues are gasified to produce syngas for subsequent Fischer-Tropsch (FT) catalytic conversion to produce incremental synthetic liquids Natural gas is used in a parallel syngas generator to provide high hydrogen content syngas to satisfy required stoichiometric ratio for the FT synthesis This syngas generator also provides hydrogen for the upgrading operation 10

11 FTCrude Concept Schematic Diluent Light Ends Fuel Gas Treatment Refinery Fuel Gas (RFG) Diluted Bitumen ADU & DRU AGO Light Ends VDU VGO Hydroprocessing Unit Naphtha Diesel Gas-Oil SDA DAO H 2 Oxygen Liquid Residue/Asphaltene POX Gasifier Unit CO 2 Natural Gas, LPG,RFG, Naphtha, CO2 SMR/ATR Reformer H 2 Recovery Unit Syngas Treatment FT Reactor & Product Upgrading FT-LPG FT-Naphtha SynDiesel SynJet FTCrude Island Liquid Sulfur 11

12 Fischer-Tropsch (FT) Process Carbon Source POX Gasifier Natural Gas Biomass MSW Vacuum Residuals Asphaltene Petroleum Coke Syngas Production Carbon Monoxide (CO) Hydrogen (H 2 ) H 2 :CO = 2 Fischer- Tropsch Conversion Catalytic conversion CO + H2 = Synthetic Hydrocarbon FT WAX FT Product Upgrading Zero sulfur, No aromatics, High cetane (70+) Synthetic Fuels 12

13 Value in Equivalent Heat Content SynDiesel SynJet Natural Gas LPG RFG Naphtha Conventional Crude Oil 20 to 40 API Refinery Bottoms 12 to 20 API Bitumen Heavy Oil Vacuum Bottoms Asphaltenes 6 to 12 API Petcoke Solid Carbon Carbon Content Hydrogen Content 13

14 Carbon Management Story Maximum Retention of Carbon Maximum Conversion of Carbon Minimum Carbon Rejection low GHG emissions, high carbon efficiency (90+%) Maximum Conversion of low value carbon to high value transport fuels Bitumen Natural Gas Petcoke / Resid CO 2 50% to 80% Reduction 100% 90+% SynDiesel SynJet FTCrude 14

15 FTCrude Life Cycle GHG Emissions (Jacobs Figure E-6 FTCrude Process and credit for excess Power Credit added) CONVENTIONAL CRUDE OIL CONVENTIONAL CRUDE OIL AERI-Jacobs LCA Report for North American & Imported Crudes July

16 Significant Benefits from Integration of GTL Plant with Heavy Oil & Bitumen Production Typical GTL Plant = 1000 BBL FT Liquid/10 MMSCF Natural Gas FTCrude = 2000 BBL FT Liquid/10 MMSCF Natural Gas & NO Petcoke 16

17 BTM BBL Hydrogen Water Steam Power Optional FTCrude Additional Benefits Bitumen, Heavy Oil or Refinery Bottoms ,000 BOPD Conventional Bitumen Upgrader or Refinery High Value Sweet or Sour SCO or Refined Fuels ,000 BOPD Natural Gas, LPG, RFG MMSCFD Oxygen Integrated GTL Plant ,000 BPD Synthetic Fuels Process Water Excess Power 17

18 FTCrude Products and Application All process units within the concept are proven technology and commercial licenses are available Concept is patented & patent pending technology, licensed by Expander Energy Inc., Calgary, Alberta, Canada The principal products are high value paraffinic naphtha and diesel/jet fuel FTCrude concept can be applied to wide range of applications including Partial and Full bitumen upgrading or bitumen refinery producing all light transportation fuels - gasoline, diesel/jet fuels It can also be applied as a debottlenecking option to existing upgraders that use gasification of residues for hydrogen production 18

19 Bitumen Bottoms Excess LPG/ Refinery gas FT Liquids Steam/Power FTCrude Partial Upgrader 21,500 BPD Diluent DILBIT 50,000 BPD Bitumen 21,500 BPD Diluent 8.5 API 4.5wt% S 17 wt% CCR Conventional Upgrader ADU/DRU VDU SDA Amine/SRU, SWS BOTTOMLESS PUB 54,500 BPD 20 to 24 API <3.3wt% S 109 vol% Yield Sour SCO < C <50 ppm metals SG = 0.92 <4.0 wt% CCR <1.0 TAN Natural Gas 0.5 to 1.2 MMSCF/KBBL SCO Oxygen Resid Gasifier FT Process FT Upgrader Syngas Generator Process CO2 <20 Ton CO2/KBBL SCO Process Water Patent Issued & Pending Sulfur 19

20 Percent Of Crude Slate Vac Residue DAO VGO Typical Bitumen Assay 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Athabasca Bitumen Blend Athabasca Bitumen Asphaltene Liquid concentrated in Sulfur & metals >40 FTCrude PUB API % Sulfur Cetane Naphtha Distillate VGO Vac Residue Crude Oils 20

21 Bitumen Bottoms Excess LPG/ Refinery gas FT Liquids Steam/Power Hydrogen FTCrude Full Upgrader 21,500 BPD Diluent DILBIT 50,000 BPD Bitumen 21,500 BPD Diluent Conventional Upgrader ADU/DRU VDU SDA Mild Hydrocracker Hydrotreater Amine/SRU, SWS 60,500 BPD 30 to 40 API <1000 ppm S 121 vol% Yield Sweet SCO Natural Gas 1.0 to 1.6 MMSCF/KBBL SCO Oxygen Resid Gasifier FT Process FT Upgrader Syngas Generator Optional SynDiesel & SynJet Process CO2 <20 Ton CO2/KBBL SCO Process Water Sulfur Patent Issued & Pending 21

22 Percent Of Crude Slate Vac Residue DAO VGO Typical Bitumen Assay 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Athabasca Bitumen Blend Athabasca Bitumen Hydro Cracker Asphaltene Liquid concentrated in Sulfur & metals >34 <0.09 >40 FTCrude SCO API % Sulfur Cetane Naphtha Distillate VGO Vac Residue Crude Oils 22

23 Maximum Bitumen Bottoms Excess LPG/ Refinery gas FT Liquids Steam/Power Hydrogen 21,500 BPD Diluent DILBIT 50,000 BPD Bitumen 21,500 BPD Diluent FTCrude Refinery Conventional Refinery ADU/DRU VDU SDA Full VGO Hydrocracker Gasoline Reformer /FCC Hydrotreater(s) SWS, Amine/SRU High Product Yield 137% vol yield 68,500 BPD ULSG Gasoline ULSD Diesel ULSJ Jet Fuel Natural Gas 2 to 2.6 MMSCF/KBBL SCO Oxygen Resid Gasifier FT Process FT Upgrader Syngas Generator Process CO2 <20 Ton CO2/KBBL SCO Process Water Sulfur Patent Issued & Pending 23

24 Percent Of Crude Slate Typical Crude Assays 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% WTI Alaska North Slope Arabian Medium Athabasca Bitumen Blend Athabasca Bitumen Canadian Sweet SCO >50 FTCrude PUB >35 <0.09 >50 >35 <0.09 >50 >50 <0.00 >50 FTCrude FTCrude FTCrude SCO (min) SCO (max) Refinery API % Sulfur Cetane Naphtha Distillate VGO Vac Residue Crude Oils 24

25 Rate of Return (%) FTCrude Economic Feasibility Chart Natural Gas NG-$3/GJ 15 NG-$6/GJ 10 NG-$12/GJ WTI ($CDN/BBL) 25

26 FTCrude Partial Upgrader Economics Revenues CAPEX for 50,000 BPD FTCrude Partial Upgrader = $1,600 M total over 2 years FTCrude PUB Sales 54,500 BPD X $75/BBL X 347 day/yr = $1,418 M/yr Estimated Operating Cost Bitumen Feed Cost 50,000 BPD X $50/BBL X 347 day/yr = $ 868 M/yr Oxygen Supply 1050 TPD X $50/Tonne X 347 day/yr = $ 18 M/yr Natural Gas Requirement 60 MMSCFD X $4/MSCF X 347 day/yr = $ 83 M/yr Additional Fixed Opex 4% X Capex = $ 64 M/yr Net BT Revenue = $ 385 M/yr Est BT IRR = 22% Est NPV@15% = $703 M 1 PUB Value= $WCS +$5= $75 per BBL Note 2: Cost of Diluent Use Cost Recovery = $ Note 1: PUB Value = $WCS + $5 = $75 /BBL Note 2: Cost of Diluent Use = Cost Diluent + Handling Cost Recovery = $20 / BBL Bitumen 26

27 FTCrude Refinery Economics Revenues Est Capex for 50,000 BPD FTCrude Refinery = $4,600 M total over 2 years FTCrude Synfuel Sales 68,500 BPD X $120/BBL X 347 day/yr = $ 2,852 M/yr Estimated Operating Cost Bitumen Feed Cost 50,000 BPD X $50/BBL X 347 day/yr = $ 868 M/yr Oxygen Supply 1850 TPD X $50/Tonne X 347 day/yr = $ 32 M/yr Natural Gas Requirement 143 MMSCFD X $4/MSCF X 347 day/yr = $ 198 M/yr Additional Fixed Opex 4% X Capex = $ 180 M/yr Net BT Revenue = $1,574 M/yr Est BT IRR = 30% Est NPV@15% = $4,687 M Note 1: Cost of Diluent Use = Cost Diluent + Handling Cost Recovery = $20/BBL Bitumen 27

28 Summary - Why FTCrude? All process units are proven technology and commercial licenses available low technical risk 100% conversion of Alberta Bitumen to high value transportation fuels Greater than 120% volume yield of refined products to bitumen supply Greater than 50% GHG emission reduction through high carbon retention/conversion by the system Concept is economically robust for a wide range of natural gas and crude oil prices (gas as high as $12/mmbtu) Concept will benefit from long term pricing -natural gas (<$5/mmbtu) and high crude oil prices (~$100/bbl) 28

29 QUESTIONS? Steve Kresnyak, P.Eng Chief Technology Officer Expander Energy Inc. (403) Jan Wagner, P.Eng Chief Process Engineer Expander Energy Inc. (403)

30 Thank you Bitumen Upgrader Residue Conversion to Incremental Synthetic Fuel Products Steve Kresnyak, P.Eng Jan Wagner, P.Eng WHOC