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UOP 7267-1© 2016 UOP LLC. A Honeywell Company All rights reserved.
Maximizing Profitability from Unconventional Oil and Gas using UOP Technologies
Mike BanachSr. Business Leader, Olefins &
Detergents
Petrochemical Congress Buenos Aires, Argentina14-15 June 2016
What is Honeywell
Aerospace $15.6 billion sales
Automation and Control Solutions$14.5 billion sales
Performance Materials and Technologies$10.2 billion sales
• 1,300 sites, 70 countries
• 132,000 employees
• Morristown, NJ headquarters
• Fortune 10055%sales outside U.S.
$40.3B2014 sales
1
PMT Business Overview
Data Using 2014 Estimate s
$10.2Bin sales
18%segment margin
• Refining and petrochemicals licenses & catalysts
• Gas & NGL processing• Equipment & field services
• Automation process control and field instrumentation
• Turnkey projects & services• Productivity & cyber
solutions
• Energy efficient refrigerants, foams and solvents
• Additives, fibers and resins• Metals & fine chemicals
Technologies for Oil & Gas Processing
Optimizing Manufacturing Processes
Transformed Chemicals
30%
31%17%
12%10%
Resins &Chemicals
Fluorine Products
Specialty
Asia Pac 36% Asia
Pac 26% Asia
Pac 16%
Balanced portfolio geographically diverse
22,000 employees serving 100 countries
EMEA27% EMEA
43% EMEA13%
UOP
HPS
Americas37% Americas
31%
Americas72%
UOP Honeywell Process Solutions
Advanced Materials
2
UOP creates knowledge for the oil and gas industry 4
Better Economics Continuous Innovation Reliability Expertise
800+R&D employees
3,000+ Active patents
2,500
200 with PhDs
Engineers and scientists
31out of 36refining technologies
in use today were developed by
UOP
• Process Technology• Catalysts • Adsorbents• Equipment• Services
UOP technology makes more than 60% of the world’s gasoline, 70% of its polyester and 90% of biodegradable detergents, and processes more than 40% of its LNG
Petrochemicals Natural GasRefining Renewables
UOP technologies offer a high return on investment
Continuous technology improvement allows customer operations to remain cutting edge
UOP technologies are among the most widely proven in the world
UOP has a century-long record leading technology development for the oil and gas industry
Largestprocess licensing organization in the world
Shale Oil & Gas Reserves - Argentina
Shale Development Creates Huge Opportunities for Argentina
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Argentina has unconventional oil reserves equivalent to 27 B barrels and shale gas reserves of 802 TCF (recoverable).
15% of total gas production is coming from tight and shale exploration.
Goal is to get 50% of gas production from these formations by 2020.
Currently 50.6 thousand BOED considering oil & gas associated production.
424 shale wells in production and 173 wells drilled in 2015.
2nd Largest Gas and 4th Largest Oil Reserves Worldwide
UOP Technology Solutions for Shale Gas and Liquids6
• C1 Adv. MTO C2= & C3=
• LPG Oleflex C3= & C4=
• LPG Cyclar Benzene & Xylenes
• Naphtha RZ Platforming Benzene
UOP 7267-6Honeywell UOP Solutions Allow You to Maximize the Opportunity
MTO: Value Chain from Gas or Coal7
Coal to Olefins (CTO)
Ethylene & Propylene
Synthesis Gas
Production
Methanol Synthesis
Coal
Gas to Olefins (GTO)Natural Gas
MTO
UOP 7267-7
MTO Connects Natural Gas and Coal to Ethylene and Propylene
UOP Advanced MTO Technology
All processes licensed by UOP
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Highest Olefin Yield High P/E Flexibility Maximum Single Train Capacity Opportunity to Produce Butadiene
Regen Gas
Air
Methanol
Water
Ethylene
C4+
Propylene
By-product
MTO Process Integrated withOlefin Cracking Process (OCP)
Sep Section
OCP
MTO Light Olefin
Recoveryn-Butenes(optional)
TPC/UOP OXO-D™Process
Butadiene(optional)
DMERecovery
Yield Benefits from OCP Integration 9
0102030405060708090
100
Naphtha MTP MTO AdvancedMTO
Car
bon
Yiel
d %
Other high value productsEthylenePropylene 2.6 tons of Methanol consumed
per ton of light olefin produced
A little more ethylene, a lot more propylene, and a lot less C4
+ by-productOCP integration increases light olefin yields by >15%
UOP 7267-9
Commercialization Status
Smooth Commercialization Results is Fast Market Acceptance
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# Owner Location Scope Status
1 Wison (Nanjing) Clean Energy Company, Ltd.
Nanjing, Jiangsu
MTO / OCP
Onstream2013
2 Jiutai Energy (Zhungeer) Company, Ltd.
Ordos, Inner Mongolia MTO SU 2017
3 Shandong Yangmei Hengtong Chemicals Company, Ltd.
Linyi, Shandong
MTO / OCP
OnstreamJune 2015
4 Jiangsu-Sailboat Lianyungang, Jiangsu
MTO / OCP SU 2016
5 Shandong Better Energy Dongying, Shandong
MTO / OCP SU 2017
6 Undisclosed China MTO / OCP Awarded
7 Undisclosed China MTO / OCP Awarded
8 LUXI Chemical Group Co. Ltd. Liaocheng, Shandong
MTO / OCP Design
The following projects have selected the UOP/INOVYN MTO™ Process:
UOP 7267-10
LPG to High Value Olefins with Oleflex Process11
Propane
Isobutane
Propylene
ContainedIsobutylene
Feedstocks Products Uses
Gasoline Blending Components
MTBE
Iso-Octane
ETBE
Synthetic Rubbers & Acrylics
Propane
Isobutane+
Propylene+
ContainedIsobutylene
Dedicated and Mixed Unit Applications
H2
High performance plastic
Fiber
Packaging
UOP 7267-11
C3 Oleflex Complex12
UOP 7267-12
OleflexUnit
C3 LPG
C4+
Byproduct H2 C2-
Propylene
SHP
P-P Splitter
Deethanizer
Depropanizer
UOP Leads the Way in Dehydrogenation
Chosen EVERY engagement 2015 – 4 PDH and 1 BDH
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UOP 7267-13
Why Customers Choose UOP Oleflex - I
• Lowest Overall Cost of Production: – Low feed consumption design available <1.15– Lowest gross / net energy usage– Lowest coke → Flexible byproduct disposition
• Smaller Investment Required– Fewest reactors on most compact plot space– Efficient regeneration requires smaller equipment– Constant equipment count → Best economy of scale
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UOP 7267-14
The Lowest CAPEX and OPEX
Why Customers Choose UOP Oleflex - II
• High Reliability / On-Stream Availability– Constant process conditions– CCR technology well proven across the industry
• Smallest Environmental Footprint:– Lowest energy leads to lowest CO2
– Low NOx & VOC emissions– Non-toxic catalyst system
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UOP 7267-15
Safe and Environmentally Friendly Technology
UOP CyclarTM Process
Cost advantaged LPG can be economically converted to a mixed aromatics product for:
High octane gasoline blending Conversion to mixed xylenes and benzene
Further processing to benzene derivatives
Conversion to para-xylene and benzene Further processing to downstream petrochemicals
UOP 6510-16
UOP CyclarTM Process
• Originally developed by UOP and British Petroleum (BP)• Conversion of cost-advantaged LPG to mixed aromatics
– LPG from field, pipeline or refinery by-product– Flexible LPG Feeds: 100% C3 to 100% C4– High-purity hydrogen by-product via PSA– No aromatics extraction unit required
• Continuous Catalyst Regeneration (CCR™) system maintains steady state operation over catalyst life
- Removes carbon deposition and re-conditions the catalyst continuously for constant activity
Economics improve as C3/C4availability increases and cost declinesUOP 6510-17
Cyclar Process Flow Diagram
CCR
HydrogenTail Gas
C6+ Aromatics
Light Ends
Heater Cells
Fresh& Recycle
Feed
Regeneration SectionSide-by-Side Reactors
Reactor Section
Fresh LPG Feed
Stripper
GasRecovery
From LPG to Gasoline and Petrochemicals
• Cyclar Process for production for gasoline blending- May include benzene management technology –
UOP BenSat™ Process (benzene saturation)
• Cyclar Process for the production of benzene and mixed xylenes
- TatorayTM Process: Toluene Benzene + Xylenes
• Cyclar Process for the production of benzene and p-Xylene- Tatoray Process: Toluene Benzene + Xylenes
- ParexTM Process: para-xylene Separation/Purification
- IsomarTM Process: o- and m-xylene para-xylene
Building Blocks from LPG to PetrochemicalsUOP 6510-19
Feedstock Versatility
Can be designed for any mix of C3/C4 feedstock.
Use of C4 generate higher aromatics than C3 and lower light byproducts.
C4 is easier to convert than C3, resulting in less amount of catalyst.
Overall conversion per pass will remain at about 60%.
Byproduct C3 is recycled back to the reactor for maximum overall yields.
C4-only leads to longer catalyst life due to slower RIT increase over cycle.
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• Typically boils between 50ºF to 160ºF (C5s/C7s)• High RVP, low octane numbers• Demand growing at ~2 %/yr average • Supply surplus over next 10 years• Sources:
- Crude Distillation & Natural Gasoline – 53%- Lightest naphtha from natural gas – 10%- Coking, Hydrocracker, hydrotreating – 16%- Raffinate and heavy naphtha blending – 21%
• Uses:- Steam crackers (Europe and Asia) – 60%- Direct use or Isomerized for gasoline blending – 30%- Diluent (cutter) for heavy oil – 4%- Paraffinic solvents – 1.5%- Other (heating, gasification, etc.) – 4.5%
Light Naphtha – What is it?
Highly Traded Commodity (378 million MTA)
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300.000
320.000
340.000
360.000
380.000
400.000
420.000
440.000
460.000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Supp
ly/D
eman
d (1
,000
tons
/yea
r)
World: Light Naphtha Supply & Demand
Total Demand Total Supply
US Light Naphtha Supply / Price22
-
500
1.000
1.500
2.000
2.500
2000 2005 2010 2011 2012 2013 2014 2015 2020 2025 2030 2035 2040
Thou
sand
Bar
rels
per
Day
US Tight Oil Production - Forecast
BakkenEagle FordPermian PlaysNiobraraOther PlaysTotal Tight Condensate
Mid/Long Term LN SurplusContinued LN Discount at Low Oil Prices
-20%
-15%
-10%
-5%
0%
5%
10%
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
Dis
coun
t/Pre
miu
m L
N v
s. B
rent
(%)
Nig
ativ
e =
Dis
coun
t
Pric
e (U
S$/B
BL)
Light Naphtha FOB, Mont Belvieu vs. Eur Brent FOB(12‐month M/A)
LN Spot - FOB MB ($/bbl) - 12 month MA Brent Spot FOB ($/bbl)12-month MA
Premium/Discount LN vs. Brent
• US’ condensate from Light Tight Oil (LTO) will continue to play a role in the mid-term – current productions: 35,000 kMTA
• Light Naphtha (LN) continues to trade at a discount versus crude oil
• High LN yields from LTO/Shale-gas keeps price of LN at discount
• LN discount vs. Brent ranging 13% to 20% since 20112015 IHS Energy - Apr 2015
Source: www.eia.gov / IHSConnect - Feb 10, 2016UOP 7331A-22
RZ PlatformingTM Process for Benzene Production
Economic Route to Upgrade Light Naphtha
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8080
6060
4040
2020
00
Aro
mat
ics
Sele
ctiv
ity, m
ol-%
Aro
mat
ics
Sele
ctiv
ity, m
ol-%
Feed Paraffin Carbon NumberFeed Paraffin Carbon Number66 77 88
• On-purpose Benzene Production- Higher aromatic yields than conventional
PlatformingTM technology- Higher selectivity from C6/C7 paraffin to aromatics
than conventional PlatformingTM technology • Upgrade paraffinic [light] feeds
- Shale-based naphtha- Low-value raffinate
• High H2 Yields for:- New fuel specifications - Higher distillates/gasoline yields- Potential for BoB conversion
RZ PlatformingTM Process: Main Reactions24
UOP 7331A-24
MethylCyclo-Pentane
H2 2 MP
3 MP
n-Hexane
1
1
3
Benzene
2c-Hexane
+ 3H2
n-HexaneMethylCyclo-Pentane
+ 3H2
Benzene
Lighter MoleculesC5-
2,2 DMB 2,3 DMB
2 MP
3 MP
RZ PlatformingTM Process: Configuration and Applications25
C4-C4-
BenzeneBenzene
TolueneToluene
RaffinateRaffinate
Heavy AromaticsHeavy Aromatics
HydrotreatedNaphthaHydrotreatedNaphtha
H2-RichGasH2-RichGas
Aromatics Extraction
and Fractionation
RZ Platforming
Unit
PurgePurge
First unit on-stream (1998)– Forward-integrated– Production of aromatic derivatives – Self-sufficient in hydrogen
Stand-alone processing– C6/C7 (Buy LN / Sell Aromatics)
Parallel LN and HN for max aromatics– w/ Fixed-Bed or CCR Platforming
Debottleneck Refinery Naphtha Section – Unconventional Light Crudes – Shale Oil
UOP 7331A-25
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• Fixed-bed process– Low pressure– 5 reactors– H2 recycle– 482-543°C – EOR 520°C – typical– CapEx and OpEx similar to CCR Platforming
Unit
• Feedstock– Best application C6/C7 – Ideal highly paraffinic– Raffinates for recycle back to RZ Platforming
Unit (after aromatics extraction)
Separator
Recovery
H2
Light Ends
RecycleGas
HHHHH
NaphthaFeed
• Ex-Situ regeneration• One load in operation• One load regenerated and stored
NHT
Stabilizer
C6+Aromatics
SGB
UOP 7331A-26
UOP RZ PlatformingTM Process Overview
Summary – RZ PlatformingTM Process27
• Addresses the product-lift needs for excess of C6-C7s
• Technology offers high benzene selectivity and yields
• High H2 byproduct can also be very beneficial
UOP 7331A-27
Summary - Shale Development Creates Opportunity28
• UOP’s Advanced MTO Technology– Highest Olefin Yields with Flexible P:E Ratio
• UOP’s Oleflex Dehydrogenation Technology– Lowest Capital Cost & Energy Usage results in
Lowest Operating Cost (CCOP) and Highest Return on Investment (ROI)
• UOP’s Cyclar Technology– Upgrade LPG to Benzene and Aromatics
• UOP’s RZ Platforming Technology– Upgrade C6-C7’s to Benzene
UOP 7267-28
Honeywell UOP Solutions Allow You to Maximize the Opportunity
Q u e s t i o n a n d A n s w e r
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