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Topping Renery Feasibility Analysis

Preliminary Material Consideration for:

Simulation for University of California, Berkeley Chemical Engineering 160

Arjan S Puniani Simon Tam Nicholas Borjian Billy Guan

| Team Leader-elect | Lieutenant | Support Staff | Support Staff

21 Feb 2013
Oral Report #1

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PROBLEM FORMULATION: Techno-economic Analysis of Topper Renery to CostEffectively Meet Local Diesel Demand

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Remote production in ExxonMobils Alaskan facilities must service local, off-road diesel demand (applications include industrial operations, mining, and barges). Research estimates from previous discussions suggest a 1kBD objective. We present preliminary ndings for a proposed topper facility that processes the medium-grade crude ANS from the TransAlaska Pipeline System (TAPS) with a output capacity of 1kBD.

Diversion

Processing
Topping renery produces 1kBD of CI-55 diesel without signicant TAPS piping loss.

Distribution

XOM ANS11U crude output is ~460kBD. Preliminary diesel processing requires at least 7kBD to satisfy production goal.

Natural gas integrated into power. Diesel diverted to local demand. Lighter alkanes re-injected to TAPS.

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Orientation

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How Puniani Partners ts into the mix and why it makes sense
Typical oil & gas supply-chain

What is minimum process invasiveness of proposed topper roll-out? We need to understand how coupled our site is to the overall crude production process.
Key Take-Away: In other words, how much of toppers functions are contributing to the overall storage and charging phase of the process stream?

Partnership Status Possibilities

Operating Subsidiary Pro: Can pool resources from parent company Con: process and discipline typically conform to parent companys culturerequire novel, creative thinking to solve next-gen engineering problems, which cant be cultivated in-house Pro: Creative sovereignty (input parameters) at discretion of contractor only nal output matters; extensive experience in formulating robust solutions suite Con: Time to baseline knowledge function of complexity

Third-Party Contractor

ENDGAME ANALYSIS: A solution through Puniani Partner s, as opposed to mobilization of a homegrown solution, is a revenuemaximizing enterprise (no changes to capital structure to nance project, reallocation of managerial intellectual capital, etc.)

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Alaska North Slope (ANS11U): Feedstock Analysis

XOM outputs more than 130kBD of ANS11U. We detail the standard assay below:

Heavy Fuel Oils

ExxonMobil Tag: ANS11U
Total Output (bbl/day)

Butane and lighter 3% Vacuum Residue 18%

Volatiles
Colorless gas, which, after catalytic reforming, becomes high-octane motor gasoline.
[Processing capex cannot be justied for regionsolution: ship to Canada as diluent for tar sands oil transportation]

460,000
Location API Gravity

Residual distillation product (atmospheric tower bottoms) classied as #6 diesel. Used in marine industry (Bunker C Fuel) and very large diesel engines ANS HFOs amongst lightest in the industry (API ~20), but heavy sulfur content poses unique engineering problems and limits application potential without concomitant capex spend Low asphatenes/heavy metals content introduces possibility of entering bunker fuel market, FCC coker unit feedstock market, and various diesel yieldenhancement schemes For Today: Ignore potential as diesel yield enhancement

Lt. Naphtha 8% Hvy Naphtha 14%

Alaska, USA
Sulfur wt%

30.9-32.1
Appearance

0.958%

Brown-black

The Trans-Alaska Pipeline System (TAPS) is an 800mi+ crude-oil conveyance connecting Prudhoe Bay to Valdez. Despite a difcult, isolated terrain in nearinhospitable conditions, crude temperatures are assumed constant: ~120F .
48in I.D. 10cm Fiberglass Insulation

TA P S

Vacuum Gas Oil 27%

Kerosene 14%

Kerosene
Thin, lightcolored cooking, lamp, and jet fuel.
[Depending on prevailing market conditions, can opt to blend kerosene with diesel fuels product suite to maximize output]

Diesel 16%

Diesel
Atmospheric gas oil (AGO), aka fuel grade #4 diesel. Technical specs demand CI-55 grade diesel, which commands additional downstream processing units in the proposed renery. BP: [400-530F]

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Details on target fuel: diesel of grade (cetane index) 55

PRODUCTION GOAL Petrol mixes (e.g. crude) can possess componentsneither necessary nor desirable to model and separate every single pure components. Once we decide upon abstraction procedure, downstream ops will focus on attaining desired grade PRIMARY METHODS OF THROTTLING-UP CI 102-105

365,000
bbl per annum
Using cetane improver chemistry (2-ethyl hexyl nitrate), one can achieve higher cetane without corresponding loss in power and fuel efciency performance.

Use DC train to attain a certain API gravity rating: 36.3. Fuel economy suffers of rening-based cetane enhancement. Classify fuel via distillation prole.

Renery Stage

Chemical Back-End

Governing composition of incoming crude approximated as:

Simulation Integration Plan Rather than register pure constituents into ASPEN, our team opted for integrated petroleum simulation suite in ASPEN.

Please refer to appendix for governing

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Process Design Algorithm whats still on the Puniani Partners plate

Progress Establish Product Denition
Explicit characterization of product specications and grade Dene major analytical requirements Establish market size to gauge protability potential

The focus of todays presentation is highlighted here:

Process Flow Diagram Development

Appropriate synthetic technology selection is primary objective Comprehensive design frontier optimizes each sub-process, maximizing likelihood of overall design optimality Dening all relevant materialsreagents & consumables Sizing reactors and equipment and reconciling with hand calculations Next steps: Rigorous incorporation of appropriate utilities and labor components to contribute to rapid prototyping and time-to-market

Material & Energy Balances

Characterizing Overall Financial Prole

Identifying sinks and sources of cash ow, whilst respecting green agenda Optimizing tradeoff between protability and sustainability represents largest challenge, though current rendition focuses on

Deep Reection & Continuous Reiteration

Identication of local natural gas demand and other alternatives to aring Recycle streams, thermodynamically-rigorous separation technologies, etc., require input to our simulacrum!

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A topper A topper is the is easy simplest to type integrate of renery Interested in sating offroad diesel demand means focus on gasoils and straight-run (SR) fuel exclusively. Capital light execution, since need not concern with catalytic reformation, etc. (Cf. simplication right)

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50,000ft view of target process and major considerations

LPG

LPG Naptha
Crude Tap
Light Naphtha

LPG Naptha Gasoline Jet/Kero

Target

Returned to Pipeline

CrudeGasoline Distillation
Jet/Kero Gasoil

Heavy Naphtha Kerosin

Gasoils

Diesels SR fuels

FURTHER STUDY
Tests are scheduled to assess the relative economic value between enhanced diesel extraction from SR fuels/ HGOs and the yield resulting from a differential step increase of the tapped crude

Atmospheric Residue

To sate the local off-road diesel demand, our proposed process demands the highly-separable heavy components (tars, residues, and diesel gasoil) of the crude oil spectrum. Denitions of SR fuels/AMO/heavy distillates vary, so our team requires Project Sponsor specication.

In Sum

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WellHead

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Down Stream

Trans-Alaskan Pipeline
ANS11U Tap
Utilities
Electricity Steam Fuel

Degraded Crude

Block Flow Diagram Blueprints

Utilities
Process Water

Desalinization

Utilities
Electricity

HGO Diesel Pathway (Tentative) CrudeDistillation

Utilities

Wastewater Treatment

Diesel Hydrodesulfurization

Electricity Steam

Raw Materials*
Hydrogen

Utilities

Sour Gas Treatment

Natural Gas Power Co-Generation

Utilities
Electricity Steam

Purication Train

Electricity Steam Fuel

PM Control Electrostatic Precipitation

Raw Materials
Value-generating additives

Enhancement Suite

SO2 Control [Amine Treatment]

Utilities

Raw Materials
Amine

Electricity Steam

Diesel

CO2

H2 S

H2 S

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Crude oils n-Alkane A topper is easy to distribution is incredibly integrate sparse Exceedingly impractical to simulate on a reaction basis (e.g. using stoichiometry of components) Instead, treat crude as a spectrum, with distinctions made across BPs rather than an almost innite number of discrete hydrocarbons

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Theoretical underpinnings of simulation crude-distillation

ASPEN Commands

1500 TBP EFV

Crude oil composition approximated by the true boiling point distillation curve (TBP), which can be calculated in ASPEN via Petroleum with English Units > Assay Data Analysis.

Temperature, F

-100

Volume Percent Vaporized

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Economic Analysis Comparable Valuation

CASE STUDY
To assist with the estimation of capital costs, we turn to our comparables universe and single out notable topper reneries that are strongly aligned with our own proposed roll-out.

Order of Magnitude Estimates

At the current stage of our design process, we utilize a Class 5 Capital Cost estimatespecically, the scaling function, which is based on the known cost of an earlier plant equipped with the same technology for producing a fairly similar product suite.
Joint Venture: MDU ResourcesCalumet Specialty Products Partners
Approx. Annual Revenues

$234mn
Footprint Crude Processed

318 acres
Location

Bakken Crude
Headcount

The Dakota Prairie renery cost an est. $280mn, and when using our lower limit of 7kBD crude processed (compared to their 20kBD), we estimate a facility cost of:
$149mn

N. Dakota, USA

~100

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Remaining Process Loose-ends

Hydrogen Production

Water Treatment

Utilities & Waste

Given the high sulfur content of Alaska North Slope crude, the topper renerys downstream unit operations will gear towards economically-efcient sulfur removalwhich requires high-purity H2. Whats best? Candidate Solutions
Properties

Raw water is required to compensate for steam/cooling stream losses, and, when treated, is a source of DI water. For water demands of <1ppm of any particulate, an ion-exchange train (with hand-selected resins) is required. For the less stringent cases, we will opt for the most widely-used:
- Membrane rejects salts, etc. [retentate] via applied pressure gradient - Recovery simulation requires feed quality, product specs, fouling tolerance

We identify several key waste minimization principles that guide our execution discipline: (1) Improve fuel quality: alternatives to fossil fuels for furnace. (2) High-purity feeds: reducing introduction of impurities in the rst place is key (3) Protecting catalysts and adsorbents: we will be using strippers to curb CO2 emissions, and clever choice of bed composition can dramatically increase life (4) Eliminating extras: Too many solvents/dissolved solids lead to wastesolvent-recovery is only useful for titanic processes (5) Throttle-up recovery: with less product in waste streams, recycle streams will be of superior quality

Utilities
Electricity Proc. Water

Electrolysis Unit Op
- or -

Utilities Utilities
Electricity Steam

H2

Electricity Proc. Water

Reverse Osmosis

DI H2O

Steam Reformation + Water Gas Shift

Intermediate Product
Methane (light key from fractionation)

Major Economic Trade-Off: Cost of consuming additional feed and cost of pumping to higher pressure [recovery limit]

Sample Waste Streams

CO2, H2S, dirty steam, C20+ alkane chains, petroleum residues, uid cracking residues, spent caustics/acids, oil-contaminated water, sulfuric solutions, desalter bottoms, sludges

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Major Assumptions Tracker

Summary of Assumption
Assay Consistency The physical properties of the crude oil components do not change over transit. Includes the 120F crude tap. [Source: XOM
ANS11U spec sheet, public domain]

Brief Description of Rationale

Assume: signicant transient heat transfers for crude localized entirely at wellhead. For well-maintained transport pipeline, reasonable to expect consistency of crude spectrum along all points of TAPS. Insulation and generators ensure constancy of T.

Atmospheric Tower Fractionation

Use the two-stage process common to most reneries, where the PetroFrac Operating Days Assume plant is out of commission 15% of the yearso we concentrate the load across the remaining days of the year Dakota Prairie is a Perfect Comparable For economic analysis, we assumed perfect correspondence with our proposal and the renery.

Major assumptions include VLE existence at every stage. No pressure differential exists across the fractionation unit, as well.

If we simply distribute 55,000BD across the remaining 310d, it added an extra 177.419BD.

Similar risk prole, product suite, and technology used.

We hope to interface with the Project Sponsor Team frequently to assess operating validity of above

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Possible turbulence? -- compliance and the regulatory environment

Government (+ Intl) Restrictions

Specication Summary

CO2 Cap: 8hr avg. of 10mg/m3 no more than once a year Particulates Cap: for PM-10, limit over 24hr avg. cannot exceed 150 g/m3

80 g/m3 annual avg. Flash Point 24hr avg. min.: 100F of 365 not to (summer), be exceeded 125F (winter) Max carbon more than residues: once per yr. 0.15wt% <15ppm (summer), (always) 0.35wt%
(winter) 0.01wt% max of ash

Inuence on technology selection. Some corporate agendas call for maximum indigenous labor capital (technology, equipment, parts) deployment, and our team is sufciently exible to accommodate unorthodox preferences. Flaring Ban. Constantly seeking novel mechanisms to circumvent aring of natural gas, including cogeneration to assist boiler duties in the fractionation column and watergas shift reactions

Experience and Reliability

Most of the constituent unit operations explored today hinge upon popular sentiment of the industry. Extent and diversity of operating experience is well-established. Initial feasibility analysis is for purposes of fastest turnaround.

Strongly aligned corporate particulate benchmarks with federal environmental agenda reduces collaborative friction

(1) Sulfur production (as a byproduct of sweetening)

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ANS: Compendium of Physical Properties [1/2]

Characteristics Alaska, USA. Line sample off TAPS juncture near Petrostar Renery in Valdez (19 Mar 2002)
Well Origin

Sulfur Content
Weathering (wt%) Sulfur (wt%)

Water Content
Weathering (wt%) Hydration (wt%)

0 10.0

1.11 1.20 1.38 1.50

0 10.0 22.5 30.5 Density

<0.1 <0.1 <0.1 <0.1

Alt. Names

ANS (govt.), ANS11U (XOM)

22.5 30.5

Brown-black, light, little odor, ne black particulates dispersed uniformly throughout liquid

Appear.

Flash Point
Wthg. (wt%) Flash Point (C)

Wthg. (wt%)

Temp. (C)

Density (g/ mL)

0 Calculated Quantities
Calculated API Gravity

<-8 19 75 115

0 10.0 22.5 30.5

10.0 22.5 30.5 Pour Point

Wthg. (wt%)

0 15 0 15 0 15 0 15

0.8777 0.8663 0.9054 0.8940 0.9303 0.9189 0.9457 0.9340

30.89

Equation for Predicting Evaporation

%Ev = (2.86+0.045T) lnt

%Ev = [wt%] evaporated; T = surface temp. [C]; t = >me [minutes]

Pour Point (C)

0 10.0 22.5 30.5

-32 -20 -9 -6
Source: EPA File Docket 600 R03 702

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ANS: Compendium of Physical Properties [2/2]

Source: EPA File Docket 600 R03 702

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Proposed Process Block Diagram Detailed Unit Ops

Amine Treatment Volatiles-based Cogeneration

Rationale
An amine treatment is the industry standard of sweetening. Our primary objective is establishing proof-by-concept

Rationale
An amine treatment

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Proposed Process Block Diagram Detail: Hydro-desulfurization

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Reiteration of Original Problem Statement

Our company has recently participated in the development of a number of new/ expanded oil elds. In some cases, the production facilities are in remote locations, and it has been determined that there is a need for a facilities to produce 1000 B/D of off-road diesel fuel for local use in industrial operations, mining, and barges near these locations. Your team has been asked to design the necessary facilities and estimate the capital and operating costs for these facilities. These topping reneries will be located in a remote location near existing crude oil pipelines. The reneries will process A) ANS (Alaska North Slope) crude in northern Alaska or B) Tengiz crude in Kazakhstan. The renery can take crude from the pipeline, process the crude to produce the required diesel fuel, and re-inject the residual oil back into the pipeline. The diesel produced must have a minimum cetane index of 55. There is very limited infrastructure at either site so everything required to support the sites operations must be provided. There is local power that is not reliable and raw water is available. Environmental considerations will also affect the design. Distribution will by trucks. Determine what facilities will be required and the capital and operating costs of these facilities. Estimate manning requirements, utilities, chemicals, and catalyst needs.