Refinery Petrochemical Integration

Returns on refining assets fallen to inadequate levels due to Low growth for major refined products Poor upgrading margins Increased competition

The drivers to these issues are:

Refinery/ Petrochemical Integration Business diversification challenges (e.g. power generation, retail marketing) Process technology developments Regulatory issues

Growth Rate
Global Petroleum demand is expected to average 2.2% during next 10 years Global demand for major petrochemical will grow twice as fast.

All the major petrochemical producing regions will be adding petrochemical processing capacity to 2005 Petrochemical New Investment/addition Million tons/ year 41.3 10.5 11.4 50.1 11.1 15.5

Ethylene Benzene Styrene Poly-olefins+ Para-xylene (PX) Terephthalic Acid (PTA)

+ Polyolefins includes polypropylene, all grades of polyethylene (including LDPE- 29.2 million tons/year, LLDPE- 20.9 million tons/year and HDPE

WORLD ETHYLENE CAPACITY (MAY 1997)

1997 North America South America West Europe East Europe Africa Middle East Asia 28,732 3365 19,786 7568 1255 4846 17812 2000 31,619 3935 20,046 8058 1555 6611 22573 % increase from 1997 to 2000 10 16.9 1.3 6.5 23.9 36.4 26.7

Australia
TOTAL

505
83,869

505
94,902

13.2

Source: Japan Petrochemical Industry Association, Tokyo, May 1997

ASIAN ETHYLENE PRODUCTION CAPACITY

1991 Japan South Korea China Taiwan East Asia Total Singapore Thailand Malaysia Indonesia Philippines Asean Total India Asia Grand Total 6150 1232 2225 745 10,352 400 230 630 510 11,492 1997 7114 3720 2338 960 14,132 960 1130 530 550 3170 510 17,812 2000* 7478 4380 4205 1390 17,453 1005 1130 1010 715 3860 1260 22,573 2005/10* 8554 4380 6723 2365 22,472 1760 1730 1600 2265 500 7855 3950 34,277

*Few of the above planned projects may not materialize or may be postponed, especially those in China and India.

Propylene demand continues to exceed growth in production from steam crackers

Projects to produce additional propylene from Refinery FCC units are being considered.

World-scale steam cracker facilities under construction cannot keep up with demand ResultRefinery- based petrochemicals can play a significant role in providing a security of supply to petrochemical processors

INDIAN SCENE.
Post Administered Pricing Regime (APR) Allow world market prices for refined products to be applied in India As product prices change, the refineries will be faced with the need to improve allocation of their capital and optimize crude oil selection strategies. The products most in demand will be transportation fuelsdiesel and motor, meeting the stringent environmental regulations Capacity increase and meeting specifications of fuels to meet stringent regulations will be involve huge capital investments Refinery profits will squeeze Alternative options to improve profitability need to be looked into

Benefits of Integration
Advantage of Counter-seasonal trends in fuel/transport demand vs. Petrochemical feedstock requirements. Integrated economics often reflect lower refinery values for petrochemical feed-stocks. Many big products from the petrochemical operations can be recycled back to the refinery at higher value. Competitive edge over stand-alone petrochemical complexes Overall economics also improves from shared utilities, transportation, maintenance and administrative functions. Finally, petrochemicals generally offer higher value, better growth opportunities.

Profitability Cycles
Petrochemicals often exhibit cyclical profitability (6-7 years cycles) Refining industry, cyclically differs in both timing and severity compared to petrochemicals - Integration allows to temper the downturns in petrochemicals by the more stable behavior of refining cycle.

Refinery/ Petrochemical integration also brings other synergistic opportunities - Energy optimization and cogeneration

Recycling H2 from integrated petrochemical complexes to refinery for increased demand in hydroprocessing in reformulated products.

Obstacles that can deter investments in extending refinery operations into petro-chemical operations include: High capital costs of new petrochemical units Product/intermediate transfer costs between refinery and petrochemical divisions

Refiners may see a higher rate of return in other| business such as retail marketing
In contrast to refiners, many chemical industry players prefer to make smaller acquisitions to fit existing portfolios and minimize risks

 The trend towards refinery/ petrochemical integration is clear as one of the options to improve the profitability . Already been implemented by Exxon, Shell, Mobil, & BP

Some Grass root refineries in Asia are being driven by petrochemical feedstock considerations: RIL, India Catalytic Reformer with 4 p-xylene units FCC unit for high yield of C3, C4 and C5 olefins

Aromatics complexes have been added to two of the four major Singapore refineries.

Broader outlook of refinery petrochemicals integration 1. 2. Energy Center Complex Utilities Island integration

Fuels & Lubricants

Power Feed stock

Power Crude/Feed stock Petrochemical Complex

Refinery Complex

Steam

Hydrogen

Gasification Complex

Petrochemicals

Figure 1- Energy Center Complex

UTILITY ISLANDS..
COMBINED FACILITY FOR ELECTRIC POWER AND OTHER UTILITY PRODUCTS

PRODUCTS AMENABLE TO INCLUSION IN UTILITY ISLAND INCLUDE:

Industrial gases (O2, N2, H2, CO, Syn gas)

Thermal energy (steam or hot water)

Electricity Cooling or chilled water

Purified water (boiler-feed, deionized, ultra high purity)

Instrument and clean dry air Process gas cleanup

Fuel Lubes Refinery Complex

Petrochemicals Power Steam gases- N2, O2, Air etc.

Petrochemical Complex

Utilities Island

Figure- 2A: Utilities Island integration

The future of petrochemical integration into the refinery cannot be characterized in simple terms. It must first be recognized that petrochemical industry is a large industry with many products and more than 500 processes.

If an existing refining facility does not already produce a sizable quantity of petrochemical products, can it ever hope to achieve an acceptable return on petrochemical projects?

Refiners produce a wide range of chemical feedstocks depending on crude type, refinery complexity, and other operating conditions.

Typically a limited number of refinery processes/ streams provide the primary feedstocks to support competitively sized petrochemical production.

PETROCHEMICALS FROM REFINERY STREAMS

Petrochemical Stream
Base Petrochemicals Ethylene Propylene Benzene, toluene, xylenes (BTX) Naphtha and LPG Refinery propylene (FCC product) Reformate Fuel gas Alkylation Gasoline blending Fuel gas Alkylation Alkylation Alkylation
Contd..

Refinery Stream

Alternative Refinery Use

Downstream Derivatives
Ethylbenzene Polypropylene Isopropanol Cumene Dilute ethylene (FCC and delayed coker off-gases) Refinery propylene (FCC product) Refinery propylene (FCC product) Refinery propylene (FCC product)

Oligomers

Refinery propylene (FCC and delayed coker) Butylenes (FCC and delayed coker) Butylenes (FCC and delayed coker) Reformate Reformate Reformate Kerosene FCC light cycle oil

Alkylation

MEK

Alkylation, MTBE Production

MTBE

Alkylation, MTBE Production

Cyclohexane Ortho-Xylene Para-Xylene Normal paraffins Naphthalene

Gasoline blending Gasoline blending Gasoline blending Refinery product Diesel blend-stock after hydro-treating

REFINERY-GENERATED FEED-STOCKS AND THEIR COMMON AND POTENTIAL USAGE

Feed-Stock LPG (Propane, Butane) Derivatives Feedstock for: Ethylene,Propylene, Butylenes by cracking/dehydrogenation: Aromatics by aromizing Acid, aldehydes & ketones through oxidn. steam

Naphtha

Light and heavy for olefins and aromatics production, depending upon the composition (steam cracking/Reforming) Light naphtha to C5-stream Hydrogenation of benzene rich fraction (69-90C) for cyclohexane/ cyclohexene, which is feed stock for fibre industry. n-paraffins for LAB, LAS etc. specialty chemicals, plasticizers and solvent
Contd.

Kerosene

Gas Oil

Feedstock for steam cracking to produce olefins (commonly used in china). Gas oil from thermal conversion process- alpha olefins for AOS.
Propylene, isopropanol, cumene, oligomers, polypropylene, acrylic acid. Butylenes- MEK, MTBE, oligomers, pure butene-1, alkyl phenols and additives, acrolein, MMA acrylic acid. High octane, benzene free gasoline blending component by alkylating benzene rich naphtha with FCC- off gases and isobutene. Olefins n-paraffins, alpha olefins, aromatics naphthalene
Contd.

FCC off gases

DCC Kerosene from thermal process (visbreaking, coking)

Reformate

BTX C9+ aromatics conversion,

from

reformate

and

their

Residues coke etc.

sludge, Power (IGCC), steam, H2, Syn gas-chemicals, High cetane, zero sulfur diesel, specialty linear waxes, olefins, alcohols etc.
Use based on acetylene chemistry

Petroleum Coke

Changing fuel specifications will have an impact on the interfaces or synergies of refining and petrochemical operations.

Levels of Refining and Petrochemical Integrations

Forward Integration
Utilization of refinery manufactured products as petrochemical feedstock rather than gasoline blending component.

Backward Integration
Disposal of petrochemical by-products to refinery applications, namely gasoline blending.

Site-wide and System-wide Integration

Side-wide integration
Petrochemical and refining operations are integrated on one site.

System-wide integration
Products are traded between several independent refinery and petrochemical sites.

Basic Petrochemical Plans

1.Steam cracker or olefins plant. 2.Aromatic Plant Both unit obtain feedstocks from refining section.
LPG, light or full range naphtha and unconverted oil for steam cracker. Reformate for aromatics.

Alternatively these feedstocks are also available from the market.

Alternatives for light naphtha 1. Feedstock for steam cracker

2. Feed stock for isomerisation unit

Alternatives for Reformate

1. Feedstock for Aromatics

2. Gasoline Blending Component

New Fuels Specification due to AOP

Before AOP
Sulphur Benzene %v/v Aromatics %v/v Olefins %v/v ppm Max. 500 Max. 5 -

AOP 200

AOP 2005

Max. 150 Max. 50 Max. 1 Max. 42 Max. 18 Max. 1 Max. 35 Max. 18

Changing Gasoline Specifications

Sulfur Sulfur
Benzene Benzene Aromatics Aromatics Olefins Olefins

AOP will Affect

Recipe for gasoline blending

Choice for feedstocks for steam cracking and aromatics unit.

 Both steam crackers and aromatics units produce by-products in addition to C2H4, C3H6 or aromatics. Some of these by-products return to the refinery as gasoline blend stocks called Chemical Returns.

 Chemical returns from steam cracker include : pyrolysis gasoline, following benzene extraction
Pygas split Light & heavy

Chemical returns from aromatic unit consists of C9 or C8 (xylenes) aromatics.

The fuel regulations being enacted will change the blending values and opportunities for chemical returns as well as the availability of light naphtha as cracker feed. This affect will be increased by the fact that gasoline demand is expected to increase at low pace than demand for C2H4 and C3H6.

Qualities of typical gasoline blending components

Blending Component
Reformate FCC gasoline -light cut -heavy cut Isomerisate Alkylate

Benzene Vol%

Sulphur ppm

Olefins vol%

Aromatics Vol%

RON/MON

1,0-10 0,7-1,0 0,9-1,5 0,1-1,1 0 0

1 100-2000 15-300 350-3500 0 0

0 30-40 20-55 2-14 0 1

60-75 5-45 1-2 40-60 0 0

99/98 91-96 / 78-84 98-96/80-82 91-96/78-84 87-92/84-90 95/93

MTBE
Pyrolysis gasoline - light cut -heavy cut C9-Aromatics

0
0-6 0-6 <1 0

0
0-600 0-50 0-600 0

1
25-35 55 0 0

0
75-88 5 86 100

111/96
98/84 96/80 99/84 105/93

There are four general refinery types

Hydroskimmer refineries consisting only of topping and reforming. FCC-type refineries with FCC plant for VGO or rasid cracking without additional hydrogen.

Hydrocracker type refineries including a hydrocracker plant for VGO cracking with hydrogen addition. Complex or FCC/Hydrocracker type, are refineries with both types of cracking units.

The reduction in aromatics content of gasoline will have major impact on refining-petrochemical synergies. All other parameters also needs to be considered; these will limit the blending returns into gasoline pool and restrict the availability of light naphtha as petrochemical feedstock.

Refinery types and aromatics content in gasoline

Hydroskimmer Topping and Reforming units only About 51% aromatics content in gasoline; 77% reformate FCC type Hydroskimming and additional FCC for VGO cracking without hydrogen addition less than 35% aromatics content in gasoline; about 38% reformate Hydrocracker type Hydroskimming and additional Hydrocracker for VGO cracking with hydrogen addition about 54% aromatics content in gasoline; 83% reformate. Complex or FCC/HC type Hydroskimming plus FCC and HC units About 45% aromatics content in gasoline; 60% reformate

Blend Stock Qualities

Pyrolysis Gasoline (PG) Pyrolysis Gasoline quality parameters are similar to FCC gasoline. PG has favourable RON and acceptable MON. Sulfur, olefins and aromatics content of PG exceed future gasoline specs. Light PG is low in aromatics but olefins content is extremely high; MON is insufficient. Reverse is true for heavy PG high aromatics low olefins.

C-9 Aromatics
C-9 aromatics are excellent gasoline blend stock
High aromaticity. Negligible olefin content. Octane comparable to reformate

Aromaticity will limit the future usage as blends.

C9-aromatics will not substitute reformate because of the fact that: The reformer produces cheap hydrogen. Reformate has the more satisfactory distillation curve (C9-aromatics heavy end only). Reformate has a lower aromatics content.

 Reformate has added advantages over C-9 aromatics

Naphtha reforming generates H2 as by-product. Distillation range of reformate favourable to gasoline blending. C9-aromatics production can be reduced by cutting reformer feed TBP (140C max.) One option to limit aromatics in gasoline is dilution with MTBE, alkylate, isomerisate etc.

Impact of Diesel Quality

If only further sulfur reduction is involved, there is likely no impact on petro-chemicals.

More stringent gasoline specifications will change refining and petrochemical synergies, as they will have an impact on refinery/petrochemical interfaces.

Steam Cracker feed stock

Increasing use of isomerisation will affect steam cracker feed supply and quality.
Unconverted oil (UCO) form hydrocracker produces less ethylene than high quality naphtha.

Ethane and LPG are other alternatives. Condensate may emerge as real alternative.

Naphtha volume and quality will change due to:

Increasing light naphtha/isomerate requirements at refinery site for aromatics dilution. And because of growing olefins demand while fuel requirements are stable or relaxed.

Changing naphtha quality:

will cause lower ethylene and propylene yields at the same throughput, while pygas output will increase. changing naphtha quality will also cause higher aromatics content in pygas and larger heavy pygas volumes.

due to more stringent gasoline specifications especially with respect to aromatics.

there will be lower blending values of pygas and C9aromatics. and a limiting of light pygas blending into gasoline due to high olefin content.

Synergies between FCC and olefin production

Catalytic Cracking can be a supplementary source for olefins.

OLEFINS FROM FCC

Generally FCC is designed to produce gasoline and diesel. (Large pore zeolites) Medium pore zeolites over crack gasoline to propylene and butylenes - Pentasil family of molecular sieves are used for this application

- ZSM-5 structure most successful

- Product gases contain 5-7 wt% propylene

Petro FCC
Targets producing petrochemical feedstocks rather than fuel products Based on new catalyst (Rx-Cat) to improve yield of propylene and aromatics. - Lower HC partial pressure - Slightly higher reactor outlet temperature - Improved spent catalyst stripping - Nearly eliminating post-riser, non-selective back-mixed cracking - High catalyst flux rates

Yield Patterns
Component, wt%
H2S, H2, C1 & C2 Ethylene Propane Propylene Butanes Butylenes Naphtha Distillate Fuel Oil Coke

Traditional FCC
2.0 1.0 1.8 4.7 4.5 6.5 53.5 14.0 7.0 5.0

Petro FCC
3.0 6.0 2.0 22.0 5.0 14.0 28.0 9.5 5.0 5.5

DEEP CATALYTIC CRACKING (DCC)

DCC is an extension of FCC process to produce more propylene and butylenes. Propylene yields of 18-20% can be obtained Modes of operation - maximization of propylene - maximization of iso-olefins Overall scheme is very similar to that of a conventional FCC

Typical Operation Conditions

DCC FCC Steam Cracking 1400-1600 -30-80 atm

Temperature F
Cat./oil ratio Dispersion steam wt% Pressure, psig

1020-1100
8-15 10-30 15-30

920-1020
4-10 0-2 15-30

DCC commercial trial (max C3=mode) yields

Wt% on feed H2 Dry gas (C1-C2) LPG (C3-C4) C5 + naphtha Light cycle oil (400-630F+) Decant oil (630F+) Coke Lt olefin yield (wt%) DCC 0.3 12.6 42.3 21.5 7.9 7.3 8.1 FCC 0.1 3.8 27.5 47.9 8.7 5.9 6.1 SC 0.6 44.0 25.7 19.3 4.7 5.7 -

C2 = C3= C4=

5.7 20.4 15.7

0.9 8.2 13.1

28.2 15.0 4.1

TABLE COMPARISON OF DCC vs. FCC vs. SC Naphtha PONAs

Component wt% Paraffins Olefins Naphthenes Aromatics Total Aromatics Breakdown Benzene Toluene C8 C9 C10+ Total DCC 14.3 32.4 5.0 48.3 100.0 FCC 28.6 35.3 9.8 26.3 100.0 SC 3.5 13.3 4.1 79.1 100.0

1.9 9.4 15.6 12.1 9.3 48.3

0.6 2.4 6.7 12.5 4.1 26.3

37.1 18.9 13.5 5.4 4.2 79.1

TABLE DCC PRODUCT SLATE AND YIELD STRUCTURE

Process Material Balance wt% C2 Minus C3 and C4 Naphtha LCO DO Coke Loss TOTAL DCC Type I 11.9 42.2 26.6 6.6 6.1 6.0 0.6 100.0 DCC Type II 5.6 34.5 39 0 9.8 5.8 4.3 100.0 FCC 3.5 17.6 54.8 10.2 9.3 4.3 0.3 100.0

Light Olefin Yield, wt% Ethylene Propylene Butylene Isobutylene Amylene Isoamylene

6.1 21.0 14.3 5.1 ---

2.3 14.3 14.7 6.1 9.8 6.8

0.8 4.9 8.1 2.3 ---

Catalytic Pyrolysis Process (CPP)

It is a hybrid DCC- steam cracking system. Operated under more severe conditions than DCC Combined yield of C2-C4 is very high It is a petrochemical process designed to make a range of olefins and aromatics.

CATALYTIC PYROLYSIS PROCESS- TYPICAL PRODUCT DISTRIBUTION

Product yield, wt%
Ethylene Propylene & butylene C5+ naphtha LCO HCO Coke Conversion, wt% (Feed: atm residue) 22.78 29.62 14.93 3.72 4.56 8.67 91.72

n-Paraffins from kerosene

Kerosene prefractionation - To tailor the kerosene to desired carbon range Hydrotreatment To remove sulfur, nitrogen and olefins and oxygenates which might poison the molex adsorbent Recovery of n-paraffins MOLEX PROCESS Liquid phase separation of n-paraffins from branched and cyclic compounds using adsorptive separation.

PETRO-CHEMICALS FROM COKER DISTILLATES

Available from coking operations in refinery

Excellent starting for host of chemicals, especially detergents

Fig.1 Coker Distillates: Typical utilization pattern using LAOP-Process

Coker Distillates Distillation Coker Distillates (C -C18) 10 LAOP Process

Linear Hydrocarbons Reactive Separation

Olefins n-Paraffins Paraffin Oil Alpha Olefin Sulphonates Sec-alcohols Secondary alkyl sulfates Chlorinaed paraffins Poly alpha olefins Olefins Linear alkyl benzene Fatty alcohols, acids and esters Fatty amines & amides Fatty ketones

Raffinate Aromatics for carbon black Feed Stock for naphthalene Blending w ith straight run refinery streams Aromatic solvents for pesticides

USES OF n-PARAFFIN Chlorinated paraffins Secondary alkane sulfonate Solvent Olefins

n-PARAFFINS

DEHYDROGENATION (PACOL)

INTERNAL OLEFINS

BENZENE

ALKYLATION

LAB

RESID PROCESSING
Currently the primary goal of an Indian refinery is: To upgrade as much crude as possible into saleable fuel products. Maximizing overall profitability.

current options: Carbon rejection (coking, deasphalting) Hydrogen addition (resid hydroprocessing) (needs additional hydrogen)

These options leave behind undesired hydrogen-deficient material rich in carbon, sulfur, metals etc.

OTHER OPTIONS..
The ability to convert this unmarketable material to produce electricity, clean lighter fuels and petrochemicals permits the refinery to increase its profitability

The refiner can choose among three electricpower-generation methods: Circulating-fluidized beds (CFB) Boilers with flue gas desulfurization (FGD) Integrated gasification combined cycle (IGCC)

Primary factors affecting the selection for power generation need balancing - Environmental issues - Efficiency - Economics while preserving strategic options for future investments.

RESIDUE CONVERSION
GASIFICATION
Gasification Power, hydrogen Syn gas petro-chemicals

Offers an alternative to handle high sulfur and metal containing residues in a refinery with value addition
Alternative economically attractive option for many of the problems associated with changing scenario in the petroleum refining industry Great advantage in co-generation and petro-chemicals via syn gas

GASIFICATION
FLEXIBLE PROCESS

CAN HANDLE WIDER FEED STOCKS INCLUDING RESIDUES AND COKE

MEETS ENVIRONMENTAL REGULATIONS WIDE RANGE OF PRODUCTS

ELECTRICITY
HYDROGEN CHEMICALS

COGENERATION
THE SEQUENCIAL PRODUCTION OF ELECTRIC POWER AND USEFUL THERMAL ENERGY AND PRODUCTS
During past 20 years more than 100,000 MW of cogeneration capacity has been built and now supplies over 13% of total power generation is US. By 2015 it is expected that natural gas combined cycle units will supply roughly 25% of total electricity generated in US. The driver behind cogeneration is the increase in efficiency compared to conventional non-integrated power generation.

COMPARISON OF ELECTRICAL GENERATION OPTIONS CFB

Sulfur-removal experience Merchantable sulfur Oxygen/ nitrogen byproduct Hydrogen byproduct Cost. $/kw 95% No

FGD
95% No

IGCC
+98% Yes

No
No 900

No
No 700

Yes
Yes 800-1,000

COMPARISON OF TYPICAL EMISSIONS, LB/MW-HR @ 100% CAPACITY

Natural gas combined cycle SO2 NOx 0.0 0.3 Coke gasif. Coke Combined cycle circulating fluid bed 0.5 0.4 3.7 0.9 Coke boiler FGD & SCR* 3.6 1,5

CO
VOC Particulates CO2 Solid waste

0.2
0.02 0.05 820 0.00

0.3
0.07 0.07 1,930 9.1

1.5
0.08 0.2 2,170 350

NA
NA 0.2 2,120 190

*Fuel gas desulfurization and selective catalytic reduction. The solid wastes from a
coke gasifier contain only the feed metals plus some carbon.

PETRO-CHEMICALS FROM REFINERY COKE

Valuable material for producing petro- chemicals Excellent source for high purity acetylene which is a useful starting material for host of petrochemicals such as acrylonitrile, vinylchloride, acrylic monomer etc.

PETRO-CHEMICALS FROM REFINERY COKE

REFINERY GASOLINE, DISTILLATE, ETC CRUDE OIL

REFINERY

COKE

CALCIUM CARBIDE PLANT

ACETYLENE OR CARBIDE

PETROCHEMICAL PLANT

ELECTRIC UTILITY

POWER

PETROCHEMICAL PRODUCTS CaCN 2 HCN Mg ACRYLONITRILE VINYL CHLORIDE PLASTICS ACRYLIC MONOMER ACETYLENE BLACK CHLORINATED SOLVENTS ACETALDEHYDE ACETIC ACID ACETIC ANHYDRIDE ACETYLENE CHEMICALS FROM REPPE CHEMISTRY

RES. & COMM. POWER TO COMMUNITY Figure -12: Fuel power relationship between refinery, utility plant, carbide plant, and petrochemical plant and petrochemical plant.

Integrating Refinery/ Aromatic complex

Case study by Chem Systems, NY. Existing refineries - North America (USGC) - Western Europe (Roterdam) - Asia (Singapore)

Return on Capital Employmed (ROCE)

Figure 1: Stand-alone USGC petrochemical plants, 1996

Very Attractive

Marginally Attractive

Very Poor
Benzene
BTX

Ethylene2

Nonenes + Tetramer

Normal Paraffins

1 Naphtha Plus LPG feedstock 2 Naphtha feestock only 4 Chemical grade 5 Polymer grade

3 Orto-Xylene co-produced; adsorption/isomerization technology

6 Selective toluene disproportionation technology

Polypropylene

Naphthalene4

cyclohexane

Isopropanol

Propylene5 Cumene Paraxylene6

Ethylene1

Paraxylene3

Octenes

MTBE MEK

Styrene

Phenol

Return on Capital Employed

Base Integrated Refinery

Integrated

Base Refinery

1995

2005

Figure 2: Integrated Refinery / Aromatics Plants, USGC

Return on Capital Employed

Integrated Refinery/Aromatic Complex

Incremental Cash Return

Base Refinery

Figure 3: Comparison of Refinery / Aromatics Return, USGC

Results of Study
Refinery/ petrochemical integration can generate higher profitability in all three regions with benefits attributed to:
Reduced capital investment and working capital because of efficient utilization of existing infrastructure Reduced fixed costs because of shared services Optimization of overall refinery product yields Higher value of transfer streams and products

POWER GENERATION INTEGRATION WITH HYDROGEN PLANT.

It is profitable to integrate power generation with other products say H2.

The cost of power is substantially reduced.

POWER GENERATION INTEGRATION WITH H2 PLANT

POWER (MW) HEAT RATE (BTU/KHW) CAPITAL ($/KW) POWER ($/KW)

Stand Alone

40

6500

800

$0.038

Integrated

41

5300

700

$0.031

*Additional benefit 20% reduction in environmental emissions chargeable to power

Base Case: 80 MMSCFD H2 and $2.50/MMBTU