(190c) Crude and Condensate Export – Distillation Requirements Defined and Explained

Refiners are calling foul when it comes to the definition of “distillation” as it appears it is being applied to exportation of condensate.  It is a far cry from what constitutes distillation in a Refinery setting.  Crude exports have been banned since the 1970’s except to Canada or in specific circumstances from Alaska and California.  Recently, The Department of Commerce has given approval to two U.S. companies that condensate can be exported with the proposition that it has gone through some level of distillation process.  The key question is does simply going through a stabilizer column qualify as “distillation”.  

This paper provides an overall view of the current status of exporting crude and condensate.  What constitutes a liquid to qualify as a condensate will be clarified.  The distillation requirements, and resultant products, will be more clearly defined and identified.  Burns & McDonnell has significant experience with Condensate splitting and stabilization and specific examples will be given to provide a clear understanding.