Roud table two Refinery & Petrochemical Integration CAIRO: 15 / 16 February 2016
Questions on the global view 1. Owner s STRATEGY: NOCs and IOCs do they have different drivers? 2. SAVE the PLANET: change of environmental constraints will affect only the refinery production: is it true? 3. MARKET: Petrochemical products prices have a high fluctuation linked to the oil price: is it true? 4. CRISIS: Today price gap between Petrochemical feedstock and products is making investment difficult? 5. COUNTRY NEEDS: How much absence of full range Petrochemical Industry is an obstacle for the clusters? 6. LOCATION: How much costs of transportation will push for a petrochemical close to its consumers? 7. POLITICAL: Different National Holding Companies for Refinery and Petrochemical can be a limitation? 8. SIZE of INVESTMENT: a 300-400 KBD full conversion refinery + a full range integrated polyolefin & aromatics petrochemical complex will cost 8-10b$: is it better to split in 2 projects with financing? 9. TECHNOLOGY: Refinery and Petrochemicals are independent parts of two different technology domains? 10.TIME is ESSENCE: what is the best approach to avoid a 5-8 years of useless EPC pre-tendering? 2
Selected real examples: Full conversion refinery: MIDOR Ethileno XXI: Mexico Refinery with Petrochemical integration: SATORP
Jubail Export Refinery Project (Saudi Arabia) Client: Saudi Aramco/ Total JV (SATORP) Production: 400,000 BPSD FEED of the entire facility Engineering, procurement and construction of two packages: hydro and catalytic cracking conversion process units Complete independent utility units as well as the interconnecting network and process control system of the entire refinery Saudia Arabia Grassroot full conversion refinery with high technological content SATORP has an annual output of 10 million metric-tons of diesel and 4 million metric tons of gasoline, 700,000 metric tons of paraxylene, 150,000 metric tons of benzene and 200,000 metric tons of high-purity propylene. See more at: http://www.total.com/en/energy-expertise/projects/refining-petrochemicalplatform/satorp#sthash.nzncvimc.dpuf 4 Technip Presentation
The OPCC case study: Configuration Scheme The State-owned China National Petroleum Corporation (CNPC or PetroChina) and the Russia oil and gas champion OAO Rosneft (Rosneft) signed (May 2014) an agreement on the design and construction planning of the Tianjin Refinery and Petrochemical complex to be built through their joint venture PetroChina- Rosneft Orient PetroChemical Tianjin Company (OPCC) in the China eastern Province of Tianjin. The selected configuration of OCPP is characterized by: Refinery is based on a single integrated CDU-VDU with VGO conversion in a M-HCU. Refinery is a high conversion scheme based on Residue Desulfurization and RFCC, to obtain a significant conversion of heavy fractions, maximizing Gasoline production. Aromatic Complex is integrated with refinery to maximize Para-xylene Production. CCR reformate feeds the Aromatic Complex, producing Benzene and Para-xylene; Raffinate products and Heavy Aromatics will be blended in the Gasoline Pool. OPCC will include a Petrochemical Complex where the Steam Cracker is fed mainly with LPG and Light Naphtha from refinery complex. The most of OPCC utilities, including H2, could be generated within the Complex. 5
TOPICS of ROUND TABLE: Integrated Ref. + Petroch.: Y or N? TYPICAL:
TWO STARS or ONE SOLUTION? PTA BP Business Drivers: Profit or Social Markets: The price gap Save the Planet: Changing «ppm» rules REFINERY Drivers To do Location issue: A tunnel with Saudi? Yansab, KSA Crisis: Is it forever? Country needs: Sustainable Development Country rules: EGPC & ECHEM Size of Investments: 5 + 4 b$ or 8 b$??? SATORP Secco Petrochem., PRC Concerns PETROCHEM Technology: Look to the future Time is essence: 5 years of pre-tendering 7
Integration means Potential Products Kero / Jet Diesel Euro V Gasoline Benzene Paraxylene EO (Ethylen Oxide) MEG - DEG - TEG HDPE LDPE EVA (ethylene vinyl acetate) Styrene ACN (Acrylonitrile) ABS (acrilonitrile-butadiene-styrene) SBR (Styrene- Butadiene Rubber) SAP (Styrene Acrylonitrile Plastic) PP (PolyPropylene) PC (PolyCarbonate) HPPO (hydrogen peroxide x propylene oxide) MMA (methyl methacrylate) ACN (Acrylonitrile) Butadiene MTBE (Methyl Tertiary Butyl Ether) Butene -1 Butyl Rubber. Reduce by-products / residues & utilities import Balance market fluctuations Maximize efficiency: The best «barrel» monetization competitiveness Save a lot by integrated offsites & utilities Save in infrastructure general costs 8
Why a Petrochemical Refinery in Egypt Egypt is strategically located in the middle: oil reserves --- consumers market of plastic 92 million of Egyptians need jobs with know-how and technology transfer opportunities Attracting foreign investments in the plastics clusters will provide: Create the engine of the a wide range of manufacturing industries for Egypt & export Reduce the unemployment, increasing a lot the skills by technology transfer to new generations Reduce the negative balance of trade: targeting the made in Egypt for everything To realize the clusters plan a large fully integrated petrochemical complex is needed Investing in Egypt instead of other locations has the following advantages: the availability of operators and support companies (skilled people) at low cost, the infrastructure to grow (school, banks, telecoms, IT systems, etc.), strong and modern government with an high potential stability for the coming years, powerful security systems, especially in the areas of industrial development valuable incentives on taxation and infrastructure, specially in the SCZone. Egypt has already a 30-years+ history in the petrochemical sector and can drive its future with a master plan for the plastic clusters, covering the gap of the existing plants. 9