Olefin – Refinery Integration

Today our respective petrochemical and refining industries are more aware of the financial and operational advantages which integration achieves. Consequently, many new facilities in developing countries are linking their new refineries with their petrochemical units. These financial advantages will also inevitably impact our North American industries.

We all recognize the major variation in olefin production capacities, feedstock and product prices and anticipated energy and emission improvements. Relative pricing between crude distillates, LPG and ethane definitely promotes ethane cracking in North America. However, that obviously reduces propylene co-product production, and yet recent relative price links and growth rates favor propylene rather than ethylene. North American propylene growth will consequently be linked to Fluidized Catalytic Cracking (FCC) units and heavier olefinic co-product conversion. Our latest catalytic FCC units (High Olefins FCC and Deep Catalytic Cracking [DCC]) produce ~10-20% propylene yields at a relatively high production rate. Current related cost data between our naphtha steam crackers and our latest DCC units will be presented. The cracking feedstock cost advantage and the higher propylene yield translates into a key DCC advantage. This financial enhancement is further improved when the steam cracker and the DCC unit are integrated. One of our latest such units produce ~ 1500 kta ethylene and ~ 1000 kta propylene.

To enhance olefin production cost advantages, we often incorporate heavy feedstock enhancements (vacuum gas oil hydro-treatment). Ethane feedstock also often requires CO2 / H2S removal facilities which may be integrated with the steam cracker and FCC type unit. Super-fractionator facilities and associated refrigeration schemes are also logically combined. Basic recommended schemes will be outlined.

Specific to North America is the fact that we have ~ 40% of total global FCC units. We produce ~ 45% of global gasoline. Our ethylene plus propylene production rates are ~ 30% global. We anticipate that as political energy-related directives proceed (i.e. reduced gasoline demand), it will become more attractive to acquire propylene and ethylene from our adjacent refinery / petrochemical facilities.

Hence, this presentation will provide key information to our respective refinery and petrochemical representatives.